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End is nigh for transitional pension period

27 September 2010
Issue: 4274 / Categories: News , Investments
No news on cap amount

HMRC have published information about the end, on 5 April 2011, of the transitional pension scheme period. It was launched by the Registered Pension Schemes (Modification of the Rules of Existing Schemes) Regulations 2009, which oversee pension scheme rules that require HMRC approval for any changes.

The introduction of the simplified tax regime, which was published on 6 April 2006 (A Day), stated all schemes had to be approved formally by HMRC in order to receive tax privileges.

Amendments made to the scheme rules of an approved pension scheme therefore also required HMRC approval in order for the scheme to maintain tax privileged status.

Since the requirement for approval by HMRC was removed on A Day, the pension schemes have had to register with the department to be eligible for tax privileges.

The transitional period has had effect on or after 6 April 2006/A Day, and it runs until either the end of 2010-2011, or pending the rules to remove the approval has been amended.

It is still unclear if the cap next year will be £30,000 or £45,000, and there has been no date issued for the release of information since the coalition Government took power.

Issue: 4274 / Categories: News , Investments
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