The Special Annual Allowance Charge introduced by Finance Act 2009 has been amended by the recent pre-budget report. The charge applies to the tax years 2009/10 and 2010/11 to individuals with relevant income in excess of £150,000 in either of these years or the two preceding years. The charge will apply on total pension contributions paid in excess of £20,000 (the Special Annual Allowance Charge threshold) or in some circumstances, a higher threshold of up to £30,000, dependent upon the level of contributions paid in previous tax years.
The PBR proposed lowering the threshold for triggering the SAA charge by reducing the relevant income level to £130,000 for any pension contributions paid on or after 9th December 2009 AND for individuals with income exceeding £130,000 the value of any employer pension contributions is to be aggregated with other income to calculate total income. Individuals will therefore now be affected if their relevant income in 2009/10 or either of the two previous years exceeds £130,000, this will apply for any contributions paid in the tax year 2009/10 after 9th December 2009.
December 10th, 2009
The Minerva SIPP can invest in a wider range of assets including commercial property and land, on an individual or group basis. Any combination of permitted investments may be made within a Minerva SIPP including deposit accounts, DFM, open market platform/wrap accounts, stockbroker accounts and trustee investment plans, all held together within the same SIPP.
SIPP Lite is a lower cost option, for those that do not require multiple investment accounts, or access to commercial property and land at outset. SIPP Lite members are restricted to a maximum of one investment account, to run alongside the default SIPP bank account. This investment account could be another bank account or ONE of the following: stockbroker account, DFM, open market platform/wrap account or a trustee investment plan. For individuals that require additional investments at a later date, including commercial property and land, they can upgrade their SIPP Lite plan to a Minerva SIPP.
A Small Self-Administered Scheme (SSAS) is a type of UK registered pension scheme. Each SSAS is governed by its own trust deed and rules and is a separate legal entity to the sponsoring employer. The sponsoring employer establishes the SSAS and invites members to join. Any individual employed by the sponsoring employer (or a participating employer) may join the scheme and all members are appointed as trustees alongside the professional trustee. SSAS trustees have a very wide range of investment options, including the ability to make secured loans to the sponsoring employer of up to 50% of the net asset value of the scheme, subject to certain conditions.
We have been operating in these markets for over 20 years. The SSAS business was formed in 1997, and in 2003 we launched our flagship product, the Minerva SIPP. The range is completed by SIPP Lite, which has been available since July 2012.
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