Letting members know about small lump sum options. What do pension trustees need to know?Lisa Wright
understandingoftheUKtax systemthroughthestudyofc)omefromemployment:[3] moreadvancedtopicswithini)Adviseonthetaxtreatmentof thetaxesstudiedpreviouslyshareoptionandshareentive schemes. andthestudyofstamptaxesii)Adviseonthetaxtreatmentof lumpsumreceipts.
Previously, anyone withdrawing benefits from their pension fund above the LTA of £1,073,100 (or the applicable fixed protection amount) was subject to a tax charge. This could be either 55% or 25%, depending on whether they were taking a lump sum or income. The Spring Budget in March...
The pension lifetime allowance was a tax charge that was payable if your combined pension benefits exceeded a certain amount but was abolished in April 2024. Instead, lump sum allowances have been introduced. For most people, the ‘lump sum allowance’ related to the benefits you take from yo...
Capital gains tax and me I’ve paid CGT. I wasn’t even very wealthy at the time. Certainly my annual income was no great shakes. I began investing 20-odd years ago with a biggish lump sum that I’d originally saved up as a house deposit. ...
Life insuranceis another important part of planning for later life. It provides alump sum to beneficiariesto cover mortgage costs, funeral arrangements and other expenses you might leave behind in the event of your death. More than two-thirds of survey participants (67%) said they had a life...
Your brokershouldtake care of this for you. Some territories do not charge withholding tax on dividends received in a UK pension. The US is the most notable one. (This doesn’t apply to ISAs. Choose where you shelter your US shares accordingly.) ...
If you’re due a large severance payout from your employer, it may be tempting to use that cash to pay down a large chunk of your mortgage, put a lump sum into your pension, or pass on some money to family members. However, Beck cautions against making such moves until you’re settl...
Benjamin Franklin famously stated that “nothing is certain but death and taxes.” While the former is still unavoidable, careful financial planning can substantially reduce the inheritance tax (IHT) payable on your estate when you die. A useful way to do this is by gifting money to family fro...
How benefits are to be paid (either via lump sum or income stream) How the trust may be settled (that is, terminated) The rules for the operation of the trust bank account Although the deed itself should be crafted by someone with adequate specialized legal, tax, and financial knowledge, ...