Uk state pension purchase years

Maximizing Your State Pension: A Crucial Financial Opportunity for UK Residents Aged 40-73

Retirement planning is a complex process that involves navigating through a plethora of options and strategies to increase your savings. While some opportunities may come with hidden drawbacks, there are certain prospects that stand out as particularly valuable.

Uk state pension purchase yearsCurrently, individuals aged 40 to 73 in the United Kingdom have a unique chance to significantly boost their State Pension by purchasing missing National Insurance (NI) years from the period between 2006 and 2016.

Understanding the Importance of National Insurance Years

The UK’s ‘new’ State Pension currently stands at £203.85 per week. However, the exact amount an individual receives depends on the number of qualifying full National Insurance (NI) years in their record. These NI years are typically accumulated through employment and NI contributions, but claiming benefits or providing care for others can also count towards qualifying years.

To receive the maximum State Pension, an individual generally needs around 35 full NI years. However, the precise number of years required may vary based on factors such as age and NI record up to this point. For example, someone who has worked consistently since the age of 18 and has never taken time off for caregiving or unemployment may reach the 35-year threshold earlier than someone who has had gaps in their employment history.

The Impact of Additional NI Contributions Beyond 35 Qualifying Years

If you have already achieved 35 full qualifying years of NI contributions, you may be wondering whether continuing to pay NI will further increase your State Pension. The answer to this question depends on your specific circumstances and the type of State Pension you are eligible for.

For individuals who reached State Pension age on or after 6 April 2016, the ‘new’ State Pension rules apply. Under this system, once you have reached 35 qualifying years, additional years of NI contributions will not increase your State Pension income further. This is because the ‘new’ State Pension is based on a flat rate, which is currently set at £203.85 per week (for the tax year 2023/24). Once you have met the requirement of 35 qualifying years, you are entitled to receive the full flat rate, and any additional years of contributions will not boost your pension income beyond this level.

However, if you reached State Pension age before 6 April 2016, you will fall under the ‘basic’ State Pension rules. In this case, you may have the opportunity to increase your State Pension income even if you have already achieved 35 qualifying years. Under the ‘basic’ State Pension system, you can accrue additional State Pension through the State Second Pension (S2P) or the State Earnings-Related Pension Scheme (SERPS). These additional pension schemes are based on your earnings and the amount of NI contributions you have made throughout your working life. If you continue to work and pay NI contributions beyond the 35-year threshold, you may be able to increase your State Pension income through these additional pension schemes, although the specific amount of increase will depend on factors such as your earnings level and the number of additional years you contribute.

Checking Your NI Contributions and State Pension Status

To make informed decisions about purchasing missing NI years and planning for your retirement, it’s essential to understand your current NI contributions and State Pension status. Fortunately, the UK Government provides online services that allow you to easily check this information. you can find the service here: “”

To check your NI contribution record, you can access your National Insurance record online through the website. You will need to create a Government Gateway account if you don’t already have one. Once logged in, you can view your NI contributions history, including any gaps in your record.

To check your State Pension status, you can use the online “Check your State Pension” service, also available on the website. This service will provide you with a State Pension forecast, which estimates the amount of State Pension you could receive based on your current NI record and the age at which you can claim it.

By regularly checking your NI contributions and State Pension status, you can identify any gaps in your record and make informed decisions about whether purchasing missing NI years is a beneficial step for your retirement planning.

The Rare Opportunity to Buy Back Missing Years

Under normal circumstances, individuals are permitted to buy back up to six years of missing NI contributions. However, when the ‘new’ State Pension was introduced, transitional arrangements were put in place to allow people to fill gaps dating back to 2006. This presents a rare opportunity for those who may have missed contributing to their NI during this period.

For instance, if an individual took a career break to raise children or care for a family member between 2006 and 2016, they now have the chance to purchase those missing years and boost their State Pension. Similarly, those who were self-employed or worked abroad during this period may also benefit from taking advantage of this opportunity.

The Cost of Purchasing Missing NI Years

The cost of purchasing missing NI years depends on the specific year(s) you wish to buy back and the type of NI contributions required. For the tax year 2023/24, the rates for voluntary Class 3 NI contributions (the most common type for buying back years) are as follows:

  • £17.45 per week for the tax year 2023/24
  • £824.20 for a full year of voluntary Class 3 contributions

It is important to note that these rates are subject to change each tax year, and the cost of buying back years from earlier tax years may be different. Additionally, some individuals may be eligible to pay Class 2 NI contributions, which have a lower weekly rate of £3.45 for the tax year 2023/24.

The Deadline Extension: Act Before 5 April 2025

Initially, the deadline for purchasing missing NI years was set for 5 April 2023. However, recognizing the high demand for this opportunity, the Government has extended the deadline twice. The first extension pushed the deadline to 31 July 2023, and a subsequent extension has now set the final deadline at 5 April 2025.

This extension provides individuals with ample time to assess their NI record and determine whether purchasing missing years is a worthwhile investment for their retirement planning. It is important to note that the cost of making voluntary NI contributions will remain frozen until the 5 April 2025 deadline, making it an even more attractive opportunity.

The Benefits of Purchasing Missing NI Years

The primary benefit of purchasing missing NI years is the potential to significantly increase your State Pension. Each additional qualifying year can add up to £5.29 per week to your State Pension, which equates to around £275 per year. Over the course of a 20-year retirement, this could amount to an extra £5,500 in State Pension income.

Moreover, increasing your State Pension can provide a more stable and reliable source of income in retirement, which can help to alleviate financial stress and improve overall quality of life. It can also reduce the need to rely on other sources of income, such as personal savings or investments, which may be subject to market fluctuations or other risks.

Who Should Consider This Opportunity?

While the focus is primarily on those aged 40 to 73, even individuals under 40 can benefit from assessing whether topping up their NI record is worthwhile. This is particularly relevant for those who have had gaps in their employment history or who have worked abroad for extended periods.

It is also important to note that purchasing missing NI years may not be the best option for everyone. Those who are already on track to receive the full State Pension under the ‘new’ State Pension rules or who have limited financial resources may not see a significant benefit from this opportunity. However, for many individuals, particularly those with gaps in their NI record or those who fall under the ‘basic’ State Pension rules, purchasing missing years can be a smart financial move.

Final Thoughts

The option to purchase missing National Insurance years presents a valuable financial opportunity for UK residents aged 40 to 73. By taking advantage of this chance to fill gaps in their NI record dating back to 2006, individuals can potentially see a significant increase in their State Pension income.

With the deadline for this opportunity now extended to 5 April 2025, and the cost of voluntary NI contributions frozen until this date, there has never been a better time to explore this option as part of your retirement planning strategy. By securing a higher State Pension, you can look forward to a more comfortable and financially stable retirement.

To fully understand the implications of purchasing missing NI years and determine whether it is the right choice for your unique circumstances, it is highly recommended to discuss this matter with a qualified and experienced accountant.

pensions tapering rules

Tapered pensions annual allowance - what is it and does it affect me?

Each year individuals can make a tax free contribution to their pension pot. Presently, for most regular tax payers, this is a maximum of £40K per year. However, the closer your income gets to £240,000 per annum, the closer the attention you’ll need to pay, as the amount you can contribute in each year starts to ‘taper off’, hence the term “pensions tapering”.

Every year, we like to make sure that our clients fully maximise their opportunity to contribute to their pension pot in a tax efficient manner. With recent changes in the pensions tapering rules and the lowering of the minimum allowance, we thought we would review the current state of affairs in regard to tax efficient pensions contributions and pensions allowance tapering.

What is the pension annual allowance?

This is simply the maximum amount that you are allowed to contribute to your pension pot and still receive tax relief.

Currently, this stands at £40K. However, if you are a higher tax bracket earner, this may be significantly reduced through the tapering of your annual pension contribution allowance, depending on your level of income within the tax year in question.

Does tapered pensions annual allowance apply to me?

We should point out immediately that if your net income is less than £200,000 and you’re unlikely to break this barrier through the addition of other sources of income, then it is highly unlikely you will be affected by tapering of the annual pensions allowance. Typically this only affects high earners and high net worth individuals (HNWI).

That said, if your regular income is significantly less than this, but for one reason or another find that you have an unexpected gain, perhaps through the sale of a second home, maturity of an insurance policy, you may find that tapering for the year the event occurs applies to you. This is why it is critical that you speak to a specialist accountant like Tax Agility, prior to any such event, so we can assess your individual situation and advise on a strategy to mitigate any undesirable and legally avoidable tax liabilities.

I am close to the £200K income level, how do I calculate a tapered allowance?

To correctly ascertain if you are impacted by pensions allowance tapering, there are four terms that need to be understood, so as to gain an accurate assessment of your actual income any payments made to pensions plans is concerned.

pensions tapering rulesNet Income in the tax year in question. To be clear here, ‘net’ doesn’t simply mean ‘after tax’. In this case net means all taxable income less deductions. The deductions we are interested in here are those related to member’s contributions paid into any UK registered pension schemes. Add up any personal contributions made to employer pensions schemes - those that fall under a ‘net pay’ agreement. The add up any contributions you may have made personally through a ‘relief-at-source’ arrangement - these schemes typically accept pensions payments made net of tax and then within the pensions scheme are grossed up to the basic rate of tax. Once you have done this deduct these amounts from your total income, including any taxable overseas income (worldwide income).

Threshold income. This is the income you have just calculated - i.e. net of any pension payments. If your threshold income is over £200,000, you will be subject to pensions tapering.

Adjusted income. This is the total figure for your income including your pension payments. If your adjusted income is more than £240,000, you will be subject to pensions tapering.

What is the difference between threshold income and adjusted income?

The basic difference represents the £40,000 pensions contribution allowance. If your threshold income starts to exceed £200,000, your contribution allowance will naturally reduce. For example, If you receive £210,000 in income, your allowance will reduce to £30,000.

How is pensions allowance tapering applied when I exceed an adjusted income of £240,000?

Once you exceed the adjusted income threshold of £240,000, a tapered allowance formula kicks in. For every £2 your adjusted income exceeds £240,000, your annual allowance for the year in question, reduces by £1.

Here are some examples to show how this works in practice.

Scenario 1 - a reduced allowance

Bob has calculated his adjusted income as £290,000 for the tax year concerned. This exceeds the adjusted income threshold by £50,000. Applying the 2 for 1 rule, his pension contribution allowance therefore is reduced by £25,000, i.e £40,000 standard allowance minus the £25,000, leaving a £15,000 tapered allowance.

Scenario 2 - minimum allowance tapering

Alice had a good year and earned £350,000. This exceeds the adjusted income threshold by £110,000. Her allowance should therefore be reduced by £55,000, more than that available. In this case the government introduced a minimum annual allowance that the tapering would allow - this is £4,000. Therefore Alice’s new annual allowance is just £4,000, not nil.

Scenario 3 - over payment and carry forward entitlement

In scenario 2, Alice had benefited from pension contributions of £40,000. Her actual allowance had been tapered to £4,000. Therefore, Alice had an excess of £36,000. Ordinarily, this amount would be added to Alice’s taxable income (net of pensions payments made by her personally). As such Alice would have to pay income tax on this amount at the prevailing tax rate for her situation. This should be declared on her Self Assessment return.

However, this was an extraordinary year for Alice. In previous years, she did not make full use of her pensions allowance. The government allows you to carry forward up to three years of entitlement up to a maximum of 100% of her earnings. As Alice has more than £36,000 in unused allowances, this will offset any income tax liability.

Why high income earners and high net worth individuals should consider Tax Agility

It can be very easy to forget the complicated issues surrounding tax implications and pensions payments. There’s nothing worse than having a great year only to find out that the tax man is hammering on the door for additional payments or even a fine because you mis-reported your actual earnings on your self assessment form.

The Tax specialists at Tax Agility work with our high income / net worth clients to ensure that they have a clear view of potential pitfalls associated with issues like pensions payments and allowances. We will advise you of any possible issues that may arise because you’ve had a significant pay rise, moved into a higher paying job, the sale of stocks and shares or other such taxable event.

In short, our tax planning services can help minimise your tax liabilities and allow you to plan and mitigate future events that may have a significant impact.

Contact Tax Agility today on 020 8108 0090 and let us help you maximise your pensions contributions!

Disclaimer. This article is for information purposes only and should not be considered tax advice under any circumstances, as individual circumstances are unique. You should always contact a tax professional if you think the scenarios described in the article may relate to you. This way we can assess your personal situation and provide accurate tax advice.

Pension scheme

A brief pension guide to directors of a limited company

If you're a director of a limited company but haven't made pension contributions through your company, you could be missing out.

In the UK, under the Pensions Act 2008, every employer is required to enrol eligible staff into a workplace pension scheme and contribute towards it.

Pensions provide a win-win situation for both employers and employees. As the aim is to encourage individuals to save for their retirement, pensions allow your employees to get tax relief when you (the employer) take workplace pension contributions out of their salaries before deducting Income Tax. For a company, pension contributions reduce your company's taxable profits.

If you're a director of a limited company and if you're taking a low salary, you can make pension contributions straight from your company to your own pension pot too. This is a tax-efficient way to get money from your company while providing you with money which you can retire on. In this article, our small business accountants aim to explain how pension contributions can help your company and also you, the director of a limited company.

If you're a director of a limited company and you take salaries

In this scenario, assuming you're a director and also a salaried employee of a limited company in England, you may get tax relief on your pension contributions worth up to 100% of your annual earnings.

Here's an example: you and your company pay into your pension (maximum £40,000 a year), your pension provider then claims basic rate tax relief of 20% on the contributions you pay up to 100% of your annual earnings. In other words, you pay in £80, tax relief adds £20, so £100 goes into your pension.

If you're a director of a limited company and you take salaries and dividends

Many small business owners take a low salary and top up the income with dividends from profits. If you are in this scenario, the amount of pension tax relief you receive is limited to your salary earnings only as dividends are not considered as 'relevant UK earnings'.

But as a director of a limited company, you can make pension contributions straight from your company's pre-taxed income which helps your retirement and also being tax efficient.

The reasons many directors prefer this tax-efficient approach is because pension contributions in this instance may be considered as an allowable business expense if they are 'wholly and exclusively' for the purposes of business and they could save you corporate tax. In addition, the company also does not have to pay tax and National Insurance on the amounts it contributes to the pension pot as long as the figures are below the annual allowance which could range from anywhere between £10,000 and £40,000 per annum excluding any roll forward allowances. As the circumstances of each person are different from others, it is best to give one of our small business accountants a call on 020 8108 0090 for personalised advice.

The rules surrounding company pension contributions

While pension contributions made via your limited company are tax efficient, there are rules to follow.

Annual allowance

Don't fully understand pensions tapering?You can learn more about it and how it may affect you in our article here. Tapered pensions annual allowance - what is it and does it affect me?.

Beware that the annual allowance is £40,000 a year, unless you have earned sufficient income to trigger the pension tapering which could reduce the annual allowance down to £10,000. Anti-pension recycling rules can also reduce this annual allowance to a lower amount of £4,000 per annum.

In some instances, you may be able to pay over £40,000 a year if you have registered with a pension scheme but haven't used the £40,000 annual allowance in the previous three years.

Lifetime allowance

You need to pay tax if your pension pots are worth more than the lifetime allowance. At present (2021/22), the lifetime allowance amount is £1,073,100. This has also been frozen for 2022/23, which given inflation rates, means a relative reduction in your overall allowance.

What counts towards your lifetime allowance can get complicated quickly as it depends on the type of pension pot you get, whether it is defined contribution or defined benefit. This is where a licensed pension advisor can help. Look for one who is regulated by the Financial Conduct Authority (FCA) and has extensive experience in pension planning.

Amount invested

Technically you can invest as much as you like into a pension, but the amount should not exceed your company's income for the year. Also, if the amounts are 'excessive' for the value of work you undertake, they may prompt HMRC to ask questions.

Get professional advice

While our small business accountants can certainly help you become efficient from a tax perspective, chances are you need a qualified pension advisor to help you choose a pension scheme that best suits you, since there are several available. For the purpose of this article, we will highlight three popular schemes.

Self-invested personal pension

A self-invested personal pension (SIPP) is a flexible and portable personal pension scheme allowing you to invest in a wide range of assets. Some SIPPs can even get a mortgage to part-fund the purchase of a rental property and use the rental income to service the mortgage repayments as well as the costs of running the property.

Small self-administered pension scheme

A small self-administered pension scheme (SSAS) is often taken by company directors and senior staff. The main benefit of an SSAS is that it offers increased flexibility on where the scheme's assets can be invested. For instance, it can purchase the building the company occupies and lease it back to the company. An SSAS can also borrow money for investment purposes if the terms allow.

Multi-employer pension scheme

Many companies have now implemented a multi-employer pension scheme, which is essentially an umbrella term referring to workplace pension schemes that are accessed by different employers and their employees. NEST, the workplace pension trust set up by the government, is an example of a multi-employer pension scheme.

Pensions and tax are complex subjects

Pensions and tax are complex subjects. How much tax benefits you can get from company pension contributions depend on your individual circumstances and the latest tax rules. This is why we encourage small business owners to speak to one of our chartered accountants first. In addition, having a chat with a qualified pension advisor can also help you to choose the best pension package.

At Tax Agility, we have dedicated small business accountants based in PutneyRichmond and Central London. Everyone in our team understands that business owners and company directors work relentlessly to achieve their dreams, which is why we are keen to help you keep your hard-earned money by becoming tax efficient.

As we are ICAEW chartered accountants, you know that you can rely on us to give you honest answers and provide services with no hidden charges. In other words, you're in good hands with us working alongside you.

This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.


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Pension scheme

Limited Company Pensions: How to use pensions to the full effect

Limited Company Pensions and SSAS

If you own a limited company, Tax Agility can assist you in implementing an Occupational Pension Scheme, such as a Small Self Administered Scheme (SSAS), in your business. Setting up a SSAS has the following advantages:

1. The SSAS is a trust that acts as a separate legal entity from your limited company, which means that it can give you additional creditor protection in the event of your company becoming liquidated. In order to administer this pension scheme, you must become a trustee of the SSAS, together with a professional trustee, as required by the Pension Act legislation.

2. You can make tax-deductible contributions from your limited company to your SSAS to a maximum of £50,000 each year for every director who is linked to the SSAS.

3. Any assets you purchase within the SSAS will grow in a capital gains and income tax free environment.

4. You can convert any previous pensions held in a Self-Invested Personal Pension scheme (SIPP), or through a commercial pension provider, into a SSAS. This will bolster your capital within the SSAS and enable you to purchase assets within the SIPP.

5. The SSAS can be set up to receive private contributions from individuals receiving the 20% uplift from the government.

6. If required, you may loan back up to 50% of the value of the assets in your SSAS to your limited company on a secured commercial arm’s length basis.

7. The SSAS can acquire intellectual property, or any other fixed property, from your limited company, paying you in cash for the assets. This can provide liquidity to your business and protect the assets in the event of liquidation.

8. On retirement, you may take a tax-free 25% cash lump sum of the benefits in the SSAS. The remaining balance of the funds is taxed and may be drawn as an annuity.

At Tax Agility we can assist you to implement a SSAS structure to achieve the above benefits and unlock your shareholder value in your limited company.

For more information on how we can help you to set up your own SSAS pension scheme, or if you have any questions about what pension scheme is perfect for your limited company, call us today on 020 8108 0090.

Summary of the Pension Reforms

TaxAgility Accountants London_PensionPension reforms finally came into effect on 6 April, but what do these changes look like, and what will this mean for pension holders going forward?

The reforms touched upon a number of areas, the most significant of which we’ve summarised below. For a personalised take on how the pension reforms affect your retirement future, speak with a qualified accountant.

Complete Access to Pension Pots

The main changes coming out of the pension reforms were first announced over twelve months ago at Budget 2014, with many of them focusing on giving pension holders greater freedom over their pension pots in terms of how they save, spend, or invest their pension going forward.

This was epitomised in the Government giving pension holders complete access to their entire pension pot from age fifty-five (with pension holders over fifty-five receiving immediate access on 6 April), without needing to buy an annuity. The new laws brought in with the pensions reforms allow pension holders to make withdrawals from their pension pot whenever they wish, with 25 percent of their withdrawal being tax-free on each occasion. Prior to these reforms, pension holders could only make one withdrawal with the 25 percent tax-free benefit.

Pension Pot Inheritance Tax Scrapped

On 6 April the so-called 55 percent ‘death tax’ on pension pots being handed down to loved one’s when the owner passes away was scrapped, with benefitting loved one’s now only having to pay tax on the pot at their income tax level.

In the unfortunate case that the owner of a pension pot dies before the age of seventy-five, the individual(s) inheriting their pension won’t be required to pay tax upon receiving the pension pot.

Great Investment Opportunities

There have been arguments on both sides of the political divide surrounding whether allowing pension holders greater freedom over their pension pot is a wise decision in the long run.

There’s certainly something to think about on both sides of the argument, with some financial analysts suggesting that many pension holders looking to immediately take out a portion of their pension upon turning fifty-five may not be aware that in doing so they may push themselves into a higher tax bracket. For the most part, however, being given greater freedom over how (and when) you can save, invest, and withdraw your pension will provide many pension holders and their accountants with a lot to think about with regard to how to maximise their future returns.

For this very reason, Chancellor of the Exchequer George Osborne made it clear ahead of the pension reforms coming into effect on 6 April that pension holders should take their financial future into their own hands; seeking out advice where appropriate to ensure all financial decisions are well thought through ahead of their implementation.

Experienced Accountants

To speak with a professional to discuss what the pension reforms mean for your financial future, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no-obligation meeting.

The Changing Tax Treatment of Defined Contribution Pensions

Pension_TaxAgility Accountants LondonDuring the Budget Chancellor of the Exchequer George Osborne laid out plans to “completely change the tax treatment of defined contribution pensions to bring it into line with the modern world,” by legislating to remove the remaining restrictions on how and when pensioners can access their savings.

Speaking on these new measures, Mr Osborne — who claimed that over thirteen million people across the UK have defined contribution schemes — said that these measures would amount to a radical change, though they’re just a small step in the direction of a fundamental reform of the taxation of defined contribution pensions. The Chancellor was quick, however, in pointing out that these changes will not apply for defined benefit pensions, though there will be consequential implications on which the government will consult shortly.

Rejecting what he called a “patronising view that pensioners can’t be trusted with their own pension pots,” the Chancellor insisted that individuals who have worked hard and saved hard all their lives should be trusted with their own finances by default.

Proposing what he claimed to be “the most far-reaching reform to the taxation of pensions since the regime was introduced in 1921,” George Osborne introduced the following changes during Budget 2014, all of which took effect on 27 March 2014:

It’s No Longer a Requirement to Purchase an Annuity

The new measures (outlined below) make it no longer a requirement to purchase an annuity, a point the Chancellor was quick to stress several times during his speech. If you’re still attracted to the certainty of an annuity, the ability to shop around for the best available deal will be made available to you via…

Free, Impartial, Face-to-Face Advice

When you retire on defined contribution pensions you will, by law, be offered free, impartial, face-to-face advice on how to get the most from the choices you have at this time, with the Chancellor pledging to provide £20 million over the next couple of years to develop this advice offering.

Guaranteed Income for Accessing Flexible Drawdown Reduced

Reducing from £20,000 to £12,000 per annum, the amount of guaranteed income needed in retirement in order to access flexible drawdown has been almost halved.

Maximum Withdrawals Increased to 150% of an Equivalent Annuity

The maximum amount of money that can be taken out under a capped drawdown arrangement has been increased from 120 percent of an equivalent annuity to 150 percent.

Lump Sum Pension Pot Withdrawals Increased Five-Fold

Prior to 27 March 2014, pension pots of less than £2,000 could be taken as a lump sum. Now, this lump sum withdrawal limit has been increased five-fold to £10,000, while the number of pension pots any individual can access as a lump sum has been upped from two to three.

Total Lump Sum Withdrawals Increase to £30,000

To correlate with the number of pension pots you can access as a lump sum increasing from two to three, the total figure of pension savings you can take out as a lump sum has been increased from £18,000 to £30,000.

Dedicated Advice on Defined Contribution Pensions

To speak with a dedicated professional to discuss the new tax treatment of defined contribution pensions, and what it means for your savings, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.


This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

The New Pensioner Bond Explained

Save_TaxAgility-Accountants-LondonCome January 2015, a new Pensioner Bond is set to be launched by the government, issued by National Savings and Investments, that will be accessible to everyone aged sixty-five and over.

The new Pensioner Bond has been designed to help out the many pensioners across the country who have seen their incomes fall dramatically as an unintended consequence of the continued low-interest rates enforced over the last few years, in a bid to support the economy.

Though Chancellor of the Exchequer George Osborne noted that the new Pensioner Bond will pay market-leading rates, the exact figures are to be set in the autumn in order to ensure they can secure the best possible rates for pensioners who wish to participate; though Mr Osborne noted during the earlier Budget 2014 that “…our assumption is 2.8% for a one year bond and 4% on a three-year bond — that’s much better than anything equivalent in the market today.”
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What is a SIPP?  SIPPs Explained

Grow_TaxAgility Accountants LondonSo, what is a SIPP? A Self Invested Personal Pension (SIPP) is a type of pension plan that you can set up alongside any existing pension plans you already have in place, with a view towards building a significant retirement pot over a long period.

Designed to make saving for retirement that little bit easier; you may invest 100% of your net earnings up to £50,000 into a SIPP in the current tax year (2013/14), with the government offering tax relief on every contribution (see below). As is true among all investments of this nature, the more you put into a SIPP, and the longer you keep it in there; the more compound interest you will build up over time.
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Pension Fees Cap Delayed Until 2015

Fees_TaxAgility-Accountants-LondonPensions minister Steve Webb has confirmed his proposed pensions fee cap, due to come into force from April, will by delayed by at least a year, stating it would “only right and fair to give employers a minimum of 12 months' notice of the changes”.

Under the proposed cap, legislation which Mr Webb is pushing forward under a previous promise of a "full frontal assault" on excessive pension fees, no pension operator could charge more than between 0.75% and 1% annually towards anybody who has been automatically enrolled into a pension scheme. Under current rules, certain (primarily older) schemes are charging up to 2.3% annually in management charges.
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What is Fixed Protection?

Save_TaxAgility-Accountants-LondonChanges to current pensions legislation, due to come into force from 6 April 2014, are set to see a reduction in the current Standard Lifetime Allowance from £1.5 million to £1.25 million.  You can protect and fix your Lifetime Allowance at £1.5 million effective immediately through Fixed Protection 2014.

This change should be acted upon immediately if you’ve already amassed pension savings of over £1.25 million (or indeed, you expect your savings to eventually sail past this figure due to growth and interest), and you are planning on adding to any pension schemes, whether through those you’re currently involved with or through a new scheme.
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