MAGNA: Wealth Management

Pension
Reforms

Trivitality- if your pension is under £30,000 it can be taken as a lump sum

  • This may be subject to taxation at your marginal rate.


Flexible Drawdown

  • You may be able to take up to 25% of your pension fund tax free and take the remaining pot as and when you want, paying tax at your marginal rate on each payment.


Uncrystallised Fund Pension Lump Sum

  • You may be able to take flexible lump sums from all or part of your pension pot that isn’t being used for income drawdown. This allows you 25% of every flexible lump sum tax free paying a marginal rate tax on the remaining income.


Death Benefits

  • If death occurs prior to age 75 funds remaining in the pension can be paid out tax free to the person(s) nominated by you prior to death If death occurs after age 75 funds remaining in the pension can be paid out to the person(s) nominated by you prior to death subject to the following taxation Income - will be taxed the beneficiary's marginal rate or as a lump sum subject to 45% tax. You have a choice of Beneficiary and this can be more than 1. The Beneficiary can also choose a successor to allow the income to cascade down the generations.


Annual Allowance

  • Once you take Pension Flexibility you will trigger what is known as the Money Purchase Annual Allowance which is set at £10,000 (2015/16). This means you will receive tax relief on contributions up to a maximum of £10,000 per annum.


Lifetime Allowance

  • Lifetime Allowance is the amount of pension savings you can have at retirement without incurring a tax charge. The current level is £1.25 million this will reduce to £1million from 2016/17.


New Rules for Lifetime Annuities

  • It may be possible for lifetime annuities to reduce as well as increase in value, outside of the existing limited range of prescribed circumstances - this is subject to consultation.

Call us on:
01789 490920
International clients:
+44 (0) 1789 490920
Decisions should not be taken based solely on the content of the website and individual advice should be sought first. Regulations, levels and bases of taxation are subject to change. The firm is not responsible for the content of external links. The content is aimed at UK residents or residents of MiFID countries (if applicable). Magna Wealth Management Limited trading as Expat Pensions is authorised and regulated by the Financial Conduct Authority FCA number 600163.
Registered in England and Wales. Registered Office Suite 2, Croft Court, Croft Lane, Temple Grafton, Warks. B49 6PW. Registered number 07136102. Magna Wealth Management Limited trading as Expat Pensions has the necessary passports to provide cross border advice within countries of the European Economic Area.