01: The new rules

Pensions have now become much simpler to understand, following the key changes to the tax rules that were introduced on 6 April 2006 (known as A-Day). The aim of this briefing is to explain the main changes. It is important to obtain specialist advice about your pensions strategy whether you are an employer, an employee or you are self-employed.

The new rules have genuinely had the simplifying effects intended by HMRC (Her Majesty’s Revenue & Customs, formerly the Inland Revenue). But a few aspects have turned out to be very complex, and these changes are so crucial that you should be making a complete reappraisal of your financial planning strategy, if you have not already done so.

The changes mainly affect how much can be contributed to pensions, the limits on the benefits that can be withdrawn from them and how those benefits can be taken. The new rules generally apply to all pension schemes regardless of when they were set up. Further mainly technical changes are in the pipeline.

Essential Guides

Pensions - the new tax rules  (319 kB)