It is expected that Summer is normally a time of reflection and consolidation, however this year that has not been the case. The publication of the Capital Adequacy Policy Statement and analysis of the Pensions Schemes Bill has given us plenty to think about.
Following on from the initial consultation paper an announcement has been made although the actual detail will be contained in the Pensions Tax Bill which is due to be published shortly. The changes are proposed to take place from April 2015 and we will be releasing a new version of SIPP~Pro and SSAS~Pro incorporating both these and the normal tax year end changes in March 2015.
The changes can be summarised into 7 key points:-
- Flexible access to pensions from age 55;
- Pension income restrictions to be abolished;
- New restrictions on contributions;
- Free access to impartial guidance;
- Transfers of defined benefit schemes;
- Retirement ages on the increase;
- A possible reduction of death taxes.
The bill entered the Parliamentary process on the 26th of June and will continue through the Houses until it is passed into law. There may be some changes to the structure of the proposals and we will wait to see how it progresses before an announcement relating to functionality changes is made.