LinkedIn page
Reward Strategy account
0 £0.00
This item was added to your bag
Reward Strategy. Incoporating Payroll World.
Filter news by topic
Browse by topic:
Reward Strategy menu
JOBS

Pension Scheme Allowances and Rates

HMRC has updated its above 2016-17 guidance

Ian   Holloway
TwitterLinkedIn
Ian   Holloway
TwitterLinkedIn

HMRC has updated its above 2016-17 guidance. This gives information on things such as:

 

• The Lifetime Allowance.
• The Annual Allowance.
• The Money Purchase Annual Allowance.
• The income tax percentage charged on payments from a pension scheme.

 

The updated guidance is a result of the enactment of the Finance Bill on 15 September 2016. Schedule 5 of Finance Act 2016 made a change to the rate of income tax charged in the circumstances that pension is taken as a lump sum early from a registered scheme because of ill-health – the “serious ill-health lump sum”. The change took effect the day after enactment with the result:

 

• If the scheme pays a serious ill-health lump sum to a member aged 75 or over and the payment is made on or before 15 September 2016, 45% tax is due.
• If the scheme pays a serious ill-health lump sum to a member aged 75 or over, and the payment is made on, or after 16 September 2016, the payment is taxed at the member’s marginal rate of tax.

The change in tax treatment was reported in HMRC’s Pension schemes newsletter 81 – September 2016. This said:

• Pension schemes should stop reporting the serious ill-health lump sum and report via Real Time Information (RTI).

• However, the RTI specifications will not be updated until December 2016 (which is probably far too late for most payroll software products to be able to include this change in 2016-17 when they are already working on 2017-18!).

 

Employers/schemes that are affected should use the workaround in newsletter 81, section 1.

Read More

Pension Scheme Allowances and Rates Pension Scheme Allowances and Rates
TwitterLinkedIn
Add New Comment
LoginRegister

MORE STORIES

TPR to bring landmark prosecution against pensions boss

TPR to bring landmark prosecution against pensions boss

TPR to inspect DB superfunds ahead of legislation

TPR to inspect DB superfunds ahead of legislation

HR teams struggling to implement new tech

HR teams struggling to implement new tech

Upcoming events

Payroll & Reward Conference

Payroll & Reward Conference

Payroll Autumn Update

Payroll Autumn Update

Reward Strategy homepage
Reward Strategy RSS

Did you find our website useful?

Thank you for your input

Thank you for your feedback

reward-strategy.com - an online news and information service for the UK’s payroll, reward, pensions, benefits and HR sectors. reward-strategy.com is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Reward Strategy is committed to diversity in the workplace.
© Copyright Shard Financial Media Ltd