Meeting points

More from IBC's 4th Annual Private Client Tax Conference on 4 July reported by MATTHEW HUTTON.

Pensions: the tax-free lump sum

Under the new régime 25% of the capital value of pension benefits may be taken as a tax-free lump sum subject to the value not exceeding the standard lifetime allowance advised John Williams. Furthermore as a change from the present régime the capital value can be taken without also taking income so long as the individual has attained the retirement age of 50 (increasing to 55 from April 2010) and has moved his fund to income drawdown (unsecured income). Given that tax relief will from 2006-07 be available on contributions of up to 100% of relevant earnings within the tax year (subject to a maximum limit of £215 000 for 2006-07 rising to £255 000 for 2010-11) consider funding pensions...