Simplification In The U.K.

Everyone involved in the Pensions Industry in the UK needs to be preparing for changes in pensions tax legislation, collectively known as 'Simplification'.

The 2004 Finance Act received Royal Assent on 22 July 2004. The Act introduced pensions "tax simplification" from A-day, 6 April 2006, when the current eight pensions' tax regimes will be replaced by a single set of allowances governing all registered pensions arrangements.

There are several significant changes. The present benefit and contribution limits will be replaced by Lifetime and Annual Allowances. Limits on tax free cash are also changed. During the phasing in of the legislation, there will be transitional provisions that will be relevant to high earning and long-serving members. They may be able to take certain steps to protect pre-A day pension benefits.

In this period leading up to A-day, trustees and employers will also need to take steps to prepare for tax simplification. They will need to communicate with members and review scheme rules and administration procedures. Pension Master has been updated to cope with these issues and is ready for life before, during and after 'A' day.

Whilst the new Simplification legislation in the UK is effective from April 2006, planning must start NOW.

L&P Systems have a solution in place … Pension Master.

Contact us now to find out how we can help you to meet the legislative requirements.

E-mail : mark.crump@lpsystems.com