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Pension tax simplification, sometimes referred to as pension simplification was a British overhaul in 2006 of taxation rules for United Kingdom pension schemes.The aim was to reduce the complicated patchwork of legislation built-up by successive administrations which were seen as acting as a barrier to the public when considering retirement planning.
They apply to people aged from 55 (57 from 2028) with private pensions, where they and/or their employers have saved up a pot of cash for retirement, technically known as a "defined contribution" or "money purchase" pension scheme. The new rules mean that 25% of the retirement fund can be taken as a tax-free lump sum, and the rest can be drawn ...
Later in life, the accumulated fund can be accessed in the same way as other types of pension. [1] Employees can make contributions up to 100% of their salary, up to a maximum of £40,000 per year. People who are not earning can contribute up to £3,600 each year. Tax relief is given in the same way as other personal pension contributions. [2]
If the fund value exceeds the lifetime allowance, the amount above the lifetime allowance will be taxed at 55%. The lifetime allowance was £1.8 million in the 2010–11 and 2011-12 tax years. From April 2012 the lifetime allowance fell to £1.5 million but there are provisions for those previously relying on the higher limit.
An appendix to the Report contains a detailed list of all hereditary pensions, payments and allowances in existence in 1881, with an explanation of the origin in each case and the ground of the original grant; there are also shown the pensions, etc., redeemed from time to time, and the terms upon which the redemption took place.
In the case of elderly people (men aged over 65 and over; women aged 60 and over), the allowances are topped-up to £10,887. Pension Contributions and withdrawal of capital (tax-free) – Contributions to approved personal or occupational pension schemes are allowable subject to certain limits. There is no requirement to buy an annuity.
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The Green Book: A Guide to Members' Allowances (often simply The Green Book) was a publication of the House of Commons of the United Kingdom.Prior to 7 May 2010 it set out the rules governing MPs' salaries, allowances and pensions, before being replaced by rules set by the Independent Parliamentary Standards Authority, created by the Parliamentary Standards Act 2009 [1] as a result of the ...