In view of the unprecedented Bank Base Rate drop yesterday Newcastle Building Society have withdrawn the 6 month fixed rate account with immediate effect.

The Minerva SIPP has now received Appropriate Personal Pension Scheme status under ASCN 7001427T and is now able to accept transfers in of Protected Rights.

Due to the current instability in the banking system the Minerva SIPP has sought from the Newcastle Building Society their present position, which is detailed in the following statement:

HMRC have today announced that protected rights benefits may be held within SIPP’s and used for self investment purposes with effect from 1st October 2008.

The basic rate of income tax will be reducing from 6th April 2008. The Budget Report 2007 announced that the basic rate of income tax would be reduced from 22% to 20% from 6th April 2008, the higher rate of 40% will remain the same whilst the starting rate of 10% will be removed completely.

Provisions contained in Finance Act 2007 are the first step to the Government abolishing the option of Contracting Out of the State 2nd Pension in the form of Protected Rights benefits.

There has been a great deal of confusion caused over the issue of members changing individual pension input periods and the impact this has on the annual allowance and tax relief.