28 June 2016
Significant reductions to the pension tax relief allowances took effect from 6 April 2016. The lifetime allowance was cut yet again, bringing it down to £1m. We also saw the introduction of a new tapered annual allowance ranging between £10,000 and £40,000 in a tax year which depends upon (among other things) an individual's total income from all sources.
How can the LCP Guides to pensions tax help?
There are many moving parts to pensions tax which is why Karen Goldschmidt and Peter Clarke, our pensions tax experts, have produced the LCP Guides as an easy way for you to inform your employees about the basics of the changes.
LCP Guides is a package of 12 'bite-size' animated videos of around 5 to 10 minutes each. The videos can be uploaded on to your own pensions website or internal platform so they can be easily accessed by your members. You can see a preview of what's included below.
Topics covered include:
- The tax incentives to save for pensions - and how this is on the move
- Annual Allowance (AA) – overview
- Lifetime Allowance (LTA) – overview
- AA: how it is used up by 'Defined Contribution' savings
- AA: how it is used up by 'Defined Benefit' savings
- AA: carrying forward unused AA
- The amount of your AA for 2016/17+
- How to report your AA charge in your tax return and how to pay it
- LTA – 2016 reduction and associated protections
- 2015/16 – how much unused AA can you carry forward from it?
- The new flexibilities for DC savings and how they fit with the pensions tax allowances
- Tax isn’t everything!
How else can we help?
LCP Guides are just one of our tax tools available to support you in communicating pensions tax changes to your employees. We are also happy to support you through member written communications tailored to your arrangements, group seminars and one-to-ones.