Important Notice To Directors and Key Employees of Companies With Executive Pensions
Transitional Protection Expiry Date 5th April 2009
With the introduction of pension ‘simplification’ in April 2006 came a window of three years to allow members of executive and company pension schemes to protect their benefits. This period expires on 5th April next year by which time protection rights must have been registered with HMRC.
The process of registration can be elongated so consideration must be given now as to whether this applies to you. If you realise post this date that you should have protected your pension assets, you can do nothing about it!
For most directors and key employees, the main area of focus is the protection of tax free cash in excess of 25% of the pension fund. This may have accumulated as a result of length of service and salaries earned up to 5th April 2006. For clients with larger funds, primary and enhanced protection offer safeguards against the lifetime allowance, currently £1.65 million for tax year 2008/09.
If you are unsure whether this applies to yourself, it is imperative that you speak to your financial adviser immediately.
To speak to one of Warr & Co.’s financial advisers, please call the office on 0161 477 6789 or e-mail at finserve@warr.co.uk.
Date of Article: 10th September 2008 |
