Close Brothers Asset Management has produced a document for the Superintendents’ Association of England & Wales, providing worked examples of tax that might be payable on your pension, please follow this link to view the document: Supts-Assoc-Lifetime-Allowance-2016.
ASPS has made representations to HMRC, in conjunction with the Superintendents’ Association of England & Wales, for members to be given a separate level of protection. But generally, as with previous reductions in Lifetime Allowance, legislation is likely to be introduced which will allow you to protect accrued benefits.
Further details of this have yet to be ratified by HMRC and the UK government but if legislation follows the practice of previous years there may be protection available:
Fixed Protection – This may enable individuals to maintain a lifetime allowance of up to £1.25 million after 6th April 2016. However, they will have to withdraw from the Police Pension Scheme and they will no longer be able to make pension contributions to any scheme in the future if this protection is to be maintained.
Individual protection – This may enable individuals with pension funds valued between £1.0 million and £1.25 million at the 6th April 2016 to set their own LTA based on their fund value at 5th April 2016. Individuals with this form of protection could, potentially continue building benefits but those benefits resulting from the funds above their individual LTA would be taxable at 55%.
These matters are fully covered on our retirement seminars which we recommend that you attend approximately 12 months before your intended retirement date.
There are limited places still available for members to attend the next retirement seminar, which will take place on 20th October 2015. Please contact ‘email@example.com’ for further details.