PROMOTION RAYMOND JAMES INVESTMENT SERVICES The Tax Man cometh.... and he's quite interested in RNONDJas your pension! Many older style pension policies will not offer the flexibility to remain invested or may require you to transfer away from them before age 75 to avoid being locked into poor value, in-house annuities and face the loss of any remaining tax free lump sum entitlement. hen it was introduced Pension funds are checked in 2006, the Lifetime against the LTA every time you access (crystallise) them, on death and on attaining age 75. So, people who are leaving their pensions invested in the hope of avoiding low annuity rates, or are seeking to Allowance (LTA) limit was only supposed to affect a very small number of pension investors. That it now raises E10m a year for HMRC, affects over 2,400 people and is rising at an eye- watering rate may encourage you to check your own pension provision. In simple terms, the LTA is the total value of private pension provision you can have before an excess charge is applied to your pension pot. This charge can be 55%, which could leave you with an unexpected and very large tax bl. The LTA has been reduced leave an inheritance for their family could realise too late that the tax man will be taking more than half HOW TO AVOID THE TRAP As always, taking early action maximises your ability to reduce the impact of these issues. Some of approaches you may consider are the following DOUBLE WHAMMY If you haven't kept an eye on your existing pension policies, you could be in for an extra "nasty surprise Apply for protection- When the I.TA was reduced to Clm in 2016, HMRC launched a couple prove to be more digestible than the possible tax charge at age 75. Bespoke your pension portfollo- Placing lower growth, more defensive assets in your pension. should result in a lower chance of from £1.8m to im in recent years leading to the marked rise in those honest pension savers who are now being affected. The LTA is only forecast to rise with inflation for the foreseeable future, which could of protection schemes for people who met the qualifying criteria. Successfully applying for one of these (free) protections could potentially save you C137,500 of tax Access your pension now- different rules apply to pensions that have already been accessed exceeding the LTA limit. If you have non-pension assets, use these to invest in higher growth/risk assets with the aim of creating an overall portfolio that suits your risk profile, but which reduces the growth in your pensions Switch to a more flexlble pension- modern, and often cheaper, pension products are available to those who need flexibility and are approaching 75. lead to more people being affected if investments grow fasser than prices. and this may make it easier for you to the LTA Even if you face an immediate tax charge, this may RADIOND ES ay RAYMOND JAMES 8 Bery Lane, Longridge, Preston, Lancs, PR3 3JA Ribble Valley 01772 780300 www.rjiswealthmanagement.co.uk Rk Waming Wn ivng your cp PROMOTION RAYMOND JAMES INVESTMENT SERVICES The Tax Man cometh.... and he's quite interested in RNONDJas your pension! Many older style pension policies will not offer the flexibility to remain invested or may require you to transfer away from them before age 75 to avoid being locked into poor value, in-house annuities and face the loss of any remaining tax free lump sum entitlement. hen it was introduced Pension funds are checked in 2006, the Lifetime against the LTA every time you access (crystallise) them, on death and on attaining age 75. So, people who are leaving their pensions invested in the hope of avoiding low annuity rates, or are seeking to Allowance (LTA) limit was only supposed to affect a very small number of pension investors. That it now raises E10m a year for HMRC, affects over 2,400 people and is rising at an eye- watering rate may encourage you to check your own pension provision. In simple terms, the LTA is the total value of private pension provision you can have before an excess charge is applied to your pension pot. This charge can be 55%, which could leave you with an unexpected and very large tax bl. The LTA has been reduced leave an inheritance for their family could realise too late that the tax man will be taking more than half HOW TO AVOID THE TRAP As always, taking early action maximises your ability to reduce the impact of these issues. Some of approaches you may consider are the following DOUBLE WHAMMY If you haven't kept an eye on your existing pension policies, you could be in for an extra "nasty surprise Apply for protection- When the I.TA was reduced to Clm in 2016, HMRC launched a couple prove to be more digestible than the possible tax charge at age 75. Bespoke your pension portfollo- Placing lower growth, more defensive assets in your pension. should result in a lower chance of from £1.8m to im in recent years leading to the marked rise in those honest pension savers who are now being affected. The LTA is only forecast to rise with inflation for the foreseeable future, which could of protection schemes for people who met the qualifying criteria. Successfully applying for one of these (free) protections could potentially save you C137,500 of tax Access your pension now- different rules apply to pensions that have already been accessed exceeding the LTA limit. If you have non-pension assets, use these to invest in higher growth/risk assets with the aim of creating an overall portfolio that suits your risk profile, but which reduces the growth in your pensions Switch to a more flexlble pension- modern, and often cheaper, pension products are available to those who need flexibility and are approaching 75. lead to more people being affected if investments grow fasser than prices. and this may make it easier for you to the LTA Even if you face an immediate tax charge, this may RADIOND ES ay RAYMOND JAMES 8 Bery Lane, Longridge, Preston, Lancs, PR3 3JA Ribble Valley 01772 780300 www.rjiswealthmanagement.co.uk Rk Waming Wn ivng your cp