As well as the increased flexibility in terms of drawdown arrangements that were introduced in April 2015 there were some important changes to what happens to the undrawn funds on death. These changes mean that your pension fund can be passed to survivors tax efficiently.
Auto-enrolment for workplace pensions
When it comes to workplace pensions, “we’re all in”. Or so said the slogan that accompanied the Government’s awareness campaign for auto-enrolment.
It’s not entirely accurate though, as there are a few exemptions to the rule which may affect smaller businesses.
Paying into a pension can be tax-efficient. Although there are no limits on the amount that you can invest in a pension, there are limits on the amount of tax relief which is available. Further, to benefit from the tax relief, the contributions must be paid into a registered pension scheme.
The Chancellor’s 2015 March Budget was clearly aimed at winning the votes of savers and pensioners in the May General Election. The key points are highlighted in this post.
Are you taking advantage of the pension carry forward rules? Are you benefiting from any unused allowances from the previous three tax years? This is generally the difference between the old £50,000 limit and the pension input each year and can be added to your relief for 2014/15. Note that the annual pension allowance is £40,000 from 6 April 2015.