Isle of Man-based pension provider Optimus has launched a new qualifying non-UK pension scheme (Qnups) aimed at wealthy individuals hit hard by the UK’s lifetime allowance cap as well as the annual tax taper.
HM Revenue & Customs has reported a significant rise in the number of British savers breaching the lifetime pension allowance (LTA) over the past year, collecting £126m ($163m, €146m) in additional tax revenue between 2015/16, up 38% from £78m the previous year.
British expats living in Australia could see their retirement plans derailed following legislation curbing the amount they can save into their pensions.
Providers expecting the reduced lifetime allowance (LTA) to spur offshore bond sales to UK residents are guilty of “wishful thinking” according to a number of distributors, who are failing to see any increase in appetite.
The amount of tax the UK government collects from pension savers who have breached their lifetime allowance (LTA) has almost quadrupled since George Osborne became chancellor, The Sunday Times reported.
The forthcoming changes to pension tax relief have led to an uptick in venture capital trust (VCT) business for three-quarters of VCT managers.
Fidelity International has launched a lifetime allowance (LTA) guide aimed at a growing number of people who have built up significant assets in their pension plans, and face the UK’s LTA falling from £1.25m to £1m in April 2016.
Calls from customers on changes to the lifetime tax allowance (LTA) increased fourfold in the second half of 2015, according to Fidelity International (FI), as consumers start to take action ahead of the April deadline.
This year has brought about a significant number of changes that impacted the personal finance landscape. There have already been a number of announcements which will affect people’s financial plans, says Andy Cumming, head of advice at Close Brothers Asset Management, who outlines four key things to watch out for in 2016.
The UK tax office has decided to offer pension savers the ability to protect their entitlement to £1.25m lifetime allowance when a new lower limit is introduced on 6 April 2016, but is looking at changing the way individuals register for the protection.
The UK government is planning to cut the lifetime limit for tax-free pension saving to £1m from £1.25m, along with a series of measures designed to trigger a savings revolution.
