It’s just 12 weeks until the start of the new tax year and the date where typically most new legislation around tax, pensions and other financial matters come into force. This year, there is the pension reform that, for one, will affect the way in which pension holders can extract their funds.
What is a pension reform?
A pension reform is simply a “reform”atting of the system to make way for new and improved products, providers and services as a whole.
Policies can take years to be actioned though, as there is a requirement to be agreed by Parliament and this can be a lengthy process.
Often reforms are extremely detailed, mapping out all eventualities and making sure the new product and policy not only meets regulations but isn’t open to abuse for investment and tax planning. There is a lot to consider and put in place.
Key changes from April 2015 are:
- Flexible pensions, allowing pension holders to draw their pension funds at an earlier age, if desired – some tax free
- Abolishment of 55% tax on death for under 75’s
2014 saw many proposed changes regarding pensions. Read more about the details of the pension reform here.
Pension planning requires expert advice. The Dental & Medical Financial Services team organise doctor pensions and dentist pensions as specialist providers. Call today to discuss the reform and how it could affect you.
Tel: 01403 780 770