sipp

Drawdown transfers - common sense prevails

The increase to the minimum pension age in April 2010 resulted in an unintentional and unwelcome consequence for individuals under age 55 who had crystallised their arrangements and wished to move to a new pension provider.

Specifically, any pension payment from a new provider following transfer would have incurred unauthorised payment tax charges, due to the normal minimum pension age not being attained.

However, the Government has now announced measures to address this issue, with regulations being brought forward to remove the unauthorised payment tax charges. Furthermore, the Government intends to backdate the regulations to cover transfers made on or after 6 April 2010.

In advance of the regulations being made, scheme administrators and scheme members acting in accordance with the announcement will not need to pay the tax charges due under the existing legislation.

The full announcement titled 'Pension transfers for people aged 50 to 55' is available from the HM Revenue & Customs website.

News

Core SIPP fees frozen

We are delighted to announce that, for the third year running, there will be no increase to our Core SIPP administration fees for both our Collective and Full SIPP products.

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