09: Pensions
Pension credit
The pension credit standard minimum guarantee will be uprated to £124 a week for single pensioners and £189 a week for couples in 2008/09.
Pension annuity reform
The Government has consulted with interested parties about the development of pension products that combine pension fund withdrawal with a guaranteed income. However, the Government has decided not to change the rules, because it says a change would increase the complexity and only affect a small number of people with large pension savings.
Pensions – spreading of contributions
The Finance Bill 2008 will contain legislation, effective from 9 October 2007, to prevent the 'spreading rules' for pension contribution tax relief being circumvented by routing payments through a new company.
Pensions – other changes
The inheritance of tax relieved pension savings using scheme pensions or lifetime annuities will be subject to unauthorised payment tax charges and, where appropriate, inheritance tax . The measure is effective for surrenders of benefits after 9 October 2007 and for increases in pension rights attributable to the death of a member when the member dies after 5 April 2008.
