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Tax on Pensions after 75
In December 2006, senior partner, Adrian Waddingham wrote “The Chancellor’s Pre-Budget Report seeks to impose new taxes on pension savings for those who have the temerity to survive beyond age 75. Any remaining pension savings on death after that age are to be deemed “unauthorised payments” and taxed at the penal rate of 70%. This early U-turn on the April 2006 pensions tax rules is not consistent with the government’s objective to encourage retirement savings. Nor does the imposition of an age-related tax fit their stated desire to outlaw age discrimination. The Treasury will find themselves fighting hard to maintain this absurd suggestion”. This letter appeared in the
Financial Times on 8 December.
If you are against these changes and would like to add your signature to the Number 10 on-line petition then please use the following link.
http://petitions.pm.gov.uk/annuities
Barnett Waddingham LLP, February 2007.