BLOG: Devil in disguise?
- Date: 27/01/2016
Devil in disguise?
Many years ago, Elvis sang the famous words “you look like an angel, walk like an angel, talk like an angel, but I got wise….”
With the end of the tax year around the corner, the press is inundated with articles about pension planning. Much has changed recently when it comes to pensions and while pension pots have potentially become a “tick all the boxes” asset, you need to be careful, or otherwise things can turn nasty with significant tax consequences, if you get it wrong. So just remember that the King “got wise” just in time. Be like the King.
Additionally, the definition in the Oxford dictionary of a pension is as follows; a regular payment made during a person’s retirement from an investment fund to which that person or their employer has contributed during their working life. Well, Mr Osborne has changed the meaning significantly. Following the rule changes introduced last April, many are now using these assets for IHT planning and regular "retirement income" is being taken from other assets. Obviously, your pension pot can still be used for an income, but is it’s now possible to pass this asset down to your chosen beneficiaries, without touching your Estate.
With the number of options available, advice is key. Make sure you seek advice from the right people and get your skates on. Don’t forget – “It’s now or never…..”