AVCs as mortgage repayment investment vehicle

jaybeetoo

Thrugelmir wrote: »

The rules are not retrospective though. Still a good option for high rate taxpayers. Compared to other forms of saving.

The Government has made retrospective changes before. When I started my AVC in 1985, the rules were I could take all of my AVC as a tax free lump sum. This was changed a few years ago so I can no longer do this.

holly_hobby

No its the other way round ...

Pre pension simplification (ie before 6 april 2006/A Day), the total AVC fund had to purchase an annuity at retirement (compulsory purchase annuity), post A day, the simplification rules changed this so that a max of 25% of the AVC fund could be commuted to TFC (subject to permitted allowances).

Hope this helps

Holly x

Sorry just spotted you started your scheme pre April 1987 which meant that part or indeed all of the AVC fund (subject to aggregated headroom check ...), could indeed have been commuted before PS came into being.

JJWW

Actually you can take out up to 100% of the AVC fund as long as it does not exceed 25% of the total of your LGPS benefits which can be quite considerable -s perhaps worth another look.

Excellent savings route though.

Who8

JJWW wrote: »

Actually you can take out up to 100% of the AVC fund as long as it does not exceed 25% of the total of your LGPS benefits which can be quite considerable -s perhaps worth another look.

Excellent savings route though.

Yes thanks, that's what I had in mind. I suppose the point about being at the mercy of legislative / tax change is the main worry with my plan though.