Setting up a second-hand market
The Government has been investigating the possibility of setting up a second-hand market in annuities.
In the Spending Review and Autumn Statement 2015, the Treasury said: ‘The Government will remove the barriers to creating a secondary market for annuities, allowing individuals to sell their annuity income stream.’
No Inheritance Tax levy on cash left in savers’ pension pots
The Government has confirmed that it won’t levy Inheritance Tax on cash left in savers’ income drawdown pension pots when they die.
The Spending Review and Autumn Statement 2015 said: ‘The Government will legislate to ensure a charge to Inheritance Tax will not arise when a pension scheme member designates funds for drawdown but does not draw all of the funds before death.
‘This will be backdated to apply to deaths on or after 6 April 2011.’
How will you generate an income from your pension savings?
Following the biggest reforms to pensions in recent years, and with the opportunity now to take control of your pensions like never before, the reforms highlight the need to obtain professional financial advice to consider your overall position. To review your situation, please contact Abacus Advice on 01732 881188 or email firstname.lastname@example.org – we look forward to hearing from you.
A PENSION IS A LONG-TERM INVESTMENT. THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
YOUR PENSION INCOME COULD ALSO BE AFFECTED BY INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. THE TAX IMPLICATIONS OF PENSION WITHDRAWALS WILL BE BASED ON YOUR INDIVIDUAL CIRCUMSTANCES, TAX LEGISLATION AND REGULATION, WHICH ARE SUBJECT TO CHANGE IN THE FUTURE.