Paphos People

A new pension regime came into effect in the UK in April 2006. A "Lifetime Allowance" was introduced (at the time £1.5 million) on the amount that an benefit from tax relief. If, when pension benefits become payable, the lifetime allowance is exceeded, a tax charge of up to 55% will arise on the excess funds. This will apply whether you are UK resident or not.

The allowance will be tested when benefits vest. Pension scheme members with funds greater than the lifetime allowance may apply for pension protection to avoid tax chares on the excess - but this must be done before 5 April 2009.

Can someone please explain this?

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"Your dog is your friend, your partner, your defender. You are his life, his love, his leader. He will be yours, faithful and true until the last beat of his heart. You owe it to him to be worthy of such devotion"

From what I can remember my FA telling me in the UK, I was allowed to take the tax free lump sums from my company pensions, providing they did not total over £1.5m (yeah, right). Anything over that sum would be taxed - I've not paid any tax!

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Jean

Retirement - harder work than working - But much more fun