The new rules on flexible access to pension funds will provide a whole host of new and exciting tax planning opportunities. Just as interesting are the changes made to the taxation of pensions on death, which open up new opportunities for wealth and inheritance tax planning.
It can often be difficult to understand who you should turn to for advice, your pension provider or your tax advisor?
For instance, say you would like to start a new business using your pension funds. Any amount in excess of the 25% lump sum is subject to income tax at your marginal tax rate, can this be sheltered by other tax reliefs?
The answer…you need advice from both. It is becoming increasingly important to make sure that your pension advisor works together with your tax advisor to maximise the opportunities that the changes bring.
To read the Examiner’s two page supplement, ‘Pension Options – Advise from the Professionals’ published on Saturday 25 April 2015, see the links: