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
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:
All investors will be required to be ‘independent’ from the
company at the time of the first share issue.
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.
Consider investing as
much as you can in
your pension this year
– especially if you are
approaching the current