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page 5

BUDGET

8 JULY 2015

contributions) in excess of £110,000. The rate of reduction in the

annual allowance is £1 for every £2 that the individual’s adjusted

income exceeds £150,000, up to a maximum reduction of £30,000,

creating a minimum allowance of £10,000.

All pension input periods open on 8 July 2015 are closed on that

date, with the next pension input period running from 9 July

2015 to 5 April 2016. All subsequent pension input periods will be

concurrent with the tax year from 2016/17 onwards.

Pensions tax relief

There will be a consultation on whether and how to undertake a

wider reform of pensions tax relief.

Unfunded employer financed retirement benefit

schemes (EFRBS)

There will be a consultation on tackling the use of unfunded

EFRBS to obtain a tax advantage in relation to remuneration.

Secondary market for pension annuities

Following consultation after the March 2015 Budget, a secondary

annuity market will not now open until 2017. Further plans will

be published in the autumn.

Venture capital schemes

All investments made by seed enterprise investment schemes

(SEISs), enterprise investment schemes (EISs) and venture capital

trusts (VCTs) will have to be made with the intention to grow

and develop a business. This requirement is subject to state aid

approval and will take effect from Royal Assent to the Summer

Finance Bill 2015. From the same date:

l

All investors will be required to be ‘independent’ from the

company at the time of the first share issue.

l

Relief will be limited to investment in companies within

seven years of their first commercial sale and for ‘knowledge

intensive’ companies within ten years of their first commercial

sale. This will not apply where the investment represents more

than 50% of turnover averaged over the preceding five years.

saver

Consider investing as

much as you can in

your pension this year

– especially if you are

approaching the current

lifetime allowance.

£