Money News
It looks like the Treasury has ignored advice from the pensions industry and has stuck with a crippling 82% tax charge that will be applied to remaining alternatively secured pension funds on death.
The Chancellor's decision to tighten up the provisions for the operation of members' and dependants' alternatively secured pensions (ASP) appears to be predicated on the basis that the vast majority of people who will be affected by it will remain ignorant of it for many years to come. This a retrograde step and will do nothing to enhance confidence in pensions.
Legislation will be included in Finance Bill 2007 to tighten up the provisions for the operation of members' and dependants' alternatively secured pension funds. This includes the introduction of a requirement to draw a minimum income from an ASP fund as well as the tax charge where ASP funds remaining on the death of a member are transferred to the pension funds of other members in the scheme.
22 March 2007 © Moneyextra.com
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