The government has announced its intention that from 6 April 2011 tax relief on pension contributions paid by or on behalf of individuals with an annual income of £150,000 or more will be restricted. Tax relief will be tapered away so that those individuals earning £180,000 or more, relief will be the same as basic rate taxpayers i.e. 20%. Until 6 April 2011 anti forestalling provisions are being introduced to prevent individuals taking advantage of the existing regulations.
You will only be affected if:
It will not affect you if:
The special annual allowance is set at an upper limit of £20,000 on additional pension savings for which full tax relief at the higher rates of income tax can be given. If this limit is exceeded the individual will be liable to a tax charge to recover tax relief above basic rate given on the additional pension savings. This will be paid through their self-assessment tax return.
The special annual allowance may be increased to a maximum of £30,000 for individuals who have paid irregular contributions in the current tax year and previous two tax years with the average of total contributions paid deemed regular contributions subject to a maximum of £30,000.
As the new rules came into effect immediately some people may find they have inadvertently exceeded the special annual allowance. Where the scheme rules allow refunds of contributions are permitted but will be liable to a 40% tax charge to recoup the rate at which tax relief was originally given. Refunds of contributions cannot be made until the following tax year in which the contribution was made.
These changes will not affect the vast majority of individuals and in respect of how Minerva SIPP handles contributions we will continue to reclaim 20% tax relief on net contributions.
Please refer to www.hmrc.gov.uk/budget2009/tax-relief-pen-cont.htm for more information.
October 29th, 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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