MSE News: Autumn Statement 2016: Pensions freedoms loophole tightened

Former_MSE_Sam_M

Autumn Statement 2016: Pensions freedoms loophole tightened...

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'Autumn Statement 2016: Pensions freedoms loophole tightened'

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hyubh

UK_regulated_FA wrote: »

When will Martin Lewis stop masquerading as a financial adviser. This afternoon a caller posed a question relating to the Autumn Statement clearly confusing the annual allowance with the reduced pension input available after entering UFPLS. Not only did Martin not correct the caller that the annual allowance was not affected

Um, in what way is the Money Purchase Annual Allowance not one form of the Annual Allowance...?

xylophone

Current rules

https://www.aegon.co.uk/support/faq/pension-technical/MPAA.html

Autumn Statement

http://www.professionaladviser.com/professional-adviser/news/2478261/autumn-statement-2016-money-purchase-annual-allowance-cut

jamesd

hyubh wrote: »

Um, in what way is the Money Purchase Annual Allowance not one form of the Annual Allowance...?

The person was simply wrong. If you take a UFPLS - the 25% tax free 75% taxable lump sum - you are then subject to a reduction in your annual allowance for money purchase pensions from £40k to £10k a year now and to £4k a year from April 2017.

gadgetmind

Loophole? It was a clearly documented part of the new rules so how's that a loophole?

JezR

It might have been more logical to make this the same value as applicable to those without earnings, ie £3600. Ideally raise this to the £4000 figure as it has been static for so long.

EdSwippet

gadgetmind wrote: »

Loophole? It was a clearly documented part of the new rules so how's that a loophole?

Definition of loophole
noun

1. an ambiguity or inadequacy in the law or a set of rules.
2. a promised tax allowance or relief that a government finds it inconvenient to honour.