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Historic Seminars for Small Schemes
hosted a series of seminars on the subject of small schemes, which include SSA, SIPP and FURBS. These seminars are designed to give both our clients and their professional advisers informative guidance on these types of arrangements. The topics covered each year vary, with an emphasis on looking at areas where there has been recent legislative or interesting developments. The more recent seminars concentrated on the changes to the taxation of pension schemes that are being brought in by the Inland Revenue with effect from April 2006. These changes are usually referred to under the banner of Pension Scheme Simplification.
Recently, the primary legislation that will introduce Pension Scheme Simplification has been put in place and we now have the Finance Act 2004. The Act received Royal Assent in July 2004.
During November 2004, seminars were held at each of the Barnett Waddingham offices in Amersham, Cheltenham, Glasgow, Leeds, Liverpool and London. These seminars provided an excellent opportunity for us to explain the latest known developments under Pension Scheme Simplification, as we understand them, and how they may affect our clients. The key points under Simplification were covered, which included amongst others:
- the implications for tax free lump sums (always a favourite item),
- opportunities for protecting existing benefits,
- retirement - including the ability to draw an income after age 75,
- death benefits,
- investment (including residential property), and
- the implications for FURBS.
Much of the fine detail of the new legislation is still to be confirmed and the consultation period for the numerous sets of regulations that flow out from the Act only ended in November. It was hoped that we would know more of the details by now but it looks likely that we may have to wait until the Spring of 2005. We are also still waiting for confirmation from the Department of Work and Pensions what requirements they will impose under the new regime. I think we can expect a lot of tidying up to be dealt with in the Finance Act 2005.
As is usual, those attending the seminar were invited to stay on afterwards for refreshments. This gave clients and their advisers the opportunity talk through issues with members of the Barnett Waddingham team and to "grill" them with those searching questions that are so particular to their own circumstances!
Paul Higgs, December 2004.