Anria

dunstonh

In light of your comments, I think it would be worth me going back to them. Please can elaborate on what "transitional relief" is, so I can determine the best way to ask the question, given that the first response I received from Santander appeared not to know about it? I note your earlier comments about April 2006 and resulting in greater tax free cash, even up to 100%. However, what brought this about and why would the government allow a pension policy to be taken tax free in that way?

In april 2006, a lot of pension legislation was changed. This included standardising the pension commencement lump sum (tax free lump sum) to 25% of the value across the pension types. Previously, different pensions could result in more or less than the 25% figure. This wasnt the only change but it shte relevant one here. There were a number of transitional reliefs which could be applied for to retain earlier rules on your plan. Whilst some had to be applied for, some were granted automatically to certain types of plan. With most hybrid and section 32 buy out bonds, they gained automatic transitional relief and this means, where applicable, there is the potential for increased lump sums.

It is possible that yours is a later version of the ANRIA which did not get the same benefits of the earlier ones. So, it may not have the greater lump sum potential. The few I have seen did not allow new premiums to be added. Yet you say yours does. So, that would suggest a different version.

wary

dunstonh wrote: »

In april 2006, a lot of pension legislation was changed. This included standardising the pension commencement lump sum (tax free lump sum) to 25% of the value across the pension types. Previously, different pensions could result in more or less than the 25% figure. This wasnt the only change but it shte relevant one here. There were a number of transitional reliefs which could be applied for to retain earlier rules on your plan. Whilst some had to be applied for, some were granted automatically to certain types of plan. With most hybrid and section 32 buy out bonds, they gained automatic transitional relief and this means, where applicable, there is the potential for increased lump sums.

It is possible that yours is a later version of the ANRIA which did not get the same benefits of the earlier ones. So, it may not have the greater lump sum potential. The few I have seen did not allow new premiums to be added. Yet you say yours does. So, that would suggest a different version.

Excellent - thanks for the detailed explanation which has given me something to refer back to Santander. Fingers crossed as a 100% tax-free lump sum would be a worthwhile benefit!