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Although the idea of imposing a Financial Transaction Tax across the whole of Europe-wide was vetoed last year, 11 states have decided to go ahead and implement the tax within their own countries.  The tax is intended to discourage undue risk-taking and to ensure that the financial sector pays its fair share of the costs […]

Background Last year, following consultation, the Government decided to address the problem of “small pots” – small pension accounts created by individuals having a short period of service in a scheme – by arranging that members’ pension pots would follow them automatically as they move jobs. At the same time the Government announced that it […]

Introduction The Department for Work & Pensions (DWP) has published a long-awaited strategy document on Reinvigorating Workplace Pensions that sets out what the Government believes to be the key elements needed for a private pension system that delivers decent pensions to savers and restores confidence in the system.  For the most part there is little […]

The Government has confirmed the following figures, relating to the new automatic enrolment obligations, for the 2013/14 tax year: £9,440 for the automatic enrolment earnings trigger, equal to the PAYE threshold, £5,668 for the lower limit of the qualifying earnings band, equal to the NICs Lower Earnings Limit, and £41,450 for the upper limit of […]

George Osborne delivered his Autumn Statement on 5 December and made further changes to the pensions tax régime – with effect from 6 April 2014: the Lifetime Allowance (LTA) (the amount of tax-advantaged savings that one may accumulate in total in pension arrangements) will be reduced from £1.5 million to £1.25 million – lower than […]

The Government is consulting on regulations that will allow schemes which provide bridging pensions to continue payment of those pensions until State Pension Age (SPA), even where this is beyond age 65. Background Some defined benefit schemes, if they have a pension age which is earlier than SPA, provide a temporary “bridging” pension between actual […]

Introduction The PPF is aiming to simplify the process of assuming responsibility for schemes in assessment.  Until now, it has been necessary for an actuary to undertake a detailed valuation of a scheme’s assets and liabilities under section 143 of the Pensions Act 2004 (“a section 143 valuation”) in order to establish that a scheme […]

FATCA is a law introduced in the USA to root out overseas tax avoidance.  Starting in January 2014 (although it has been deferred twice so far!), Foreign Financial Institutions will be required to: register with the US Internal Revenue Service (IRS), provide information to the IRS regarding any US taxpayers who are “account holders” and […]

This article replaces our earlier article on the same subject and reflects subsequent amendments. The Government has introduced legislation, into the Finance Act 2012, to ensure that employers who use Asset-backed Contributions (“ABCs”) to fund deficits in their pension schemes do not benefit from excessive tax relief on those contributions. The measure that they originally […]

Background The Government ran a consultation last year aimed at addressing the problem of “small pots” – small pension accounts that relate to former scheme members. This issue is expected to become more widespread as the auto-enrolment of millions of new pension savers begins later this year and as people tend to move job more […]