‘A’ Day (Appointed day) arrived on 6th April 2006 and brought with it sweeping and radical changes for all pension plans – whether occupational or personal.
From this date there will be just one set of tax rules for all types of pension, with an individual Lifetime Allowance and an individual Annual Allowance. These are annually assessed and reset as the Government sees fit. All individuals will be able to fund up to these new attractive limits, although tax relief will be restricted for high earners. Schemes already in existence before this date will need to update their rules to allow some of the new flexibilities.
Exceeding these limits will simply trigger a tax charge.
The ‘A’ Day rules made the majority of pensions much simpler and there could be a number of key advantages
There will also be a number of other changes including :-
Why not contact us to review your retirement planning?
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