Pensions are an important consideration for all and become more so the older you get but what are the rules?
Occupational pension schemes: trustees’ responsibilities
Employers can help promote retirement benefits for their employees in a number of ways including occupational schemes. Occupational schemes require the establishment of a trust in order in order to gain the tax advantages and to ensure that the assets of the pension scheme are kept separate from those of the employer.
Pensions – tax treatment on death
If an individual has not bought an annuity, a defined contribution pension fund remains available to pass on to selected beneficiaries. Inheritance tax (IHT) can be avoided by making a ‘letter of wishes’ to the pension provider suggesting to whom the funds should be paid. If an individual’s intention has not been expressed the funds may be paid to the individual’s estate resulting in a potential IHT liability.
Pensions – automatic enrolment
Outlines employers’ responsibilities under Pensions Auto Enrolment. The government has placed greater responsibility on employers to provide access to pension provision.
Pensions – tax reliefs
There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension:
• Workplace pension schemes
• Personal Pension schemes.
Personal Pensions are common types of ‘registered pension schemes’ which allow members to obtain tax relief on contributions into the scheme and tax free growth of the fund within limits. We consider the rules here. At SG&Y, we provide advice on all taxes in London area and can help you to consider maximising tax relief on pension provision.
020 8933 0019 Accountants Bookkeeping Company Formation PAYE Payroll Personal Tax Returns Vat Accounting Accountancy Bookkeeper Accountant Pensions