Frequently Asked Questions2019-08-19T22:36:04+01:00

Frequently Asked Questions

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How To Unlock Or Cash In Pensions At 552019-04-25T15:14:01+01:00

Under pension freedoms, the rules allow anyone aged 55 and over to take the whole amount of their pension pot as a lump sum, 25% of this will be tax free, but the rest being taxed as earned income in the year it’s taken out.

How Can I Transfer My Pension Myself Instead Of Using A Financial Adviser?2019-04-25T15:12:46+01:00

It is possible to transfer an occupational pension scheme, to a personal pension or a SIPP yourself.

However, if the CETV is above £30,000 or includes safeguarded benefits or guarantees, then advice from a financial adviser is required.

How Can I Use Flexi Access Drawdown To Receive A Flexible Retirement Income2019-04-25T15:14:43+01:00

You can leave your money in your pension pot and take an income from it.

Any money left in your pension pot remains invested, which may give your pension pot a chance to grow, but it could go down in value too.

Pension Annual Allowance – How Much Is It?2019-04-25T15:10:30+01:00

The annual allowance is a limit on the total amount that can be paid into your pension scheme(s) each year and still receive tax relief.

The annual allowance is currently capped at £40,000.

What Is The Pension Lifetime Allowance2019-04-25T15:10:35+01:00

The Lifetime Allowance is a limit on the amount of pension benefit that can be drawn from pension schemes, whether lump sums or retirement income and can be paid without triggering an extra tax charge.

The lifetime allowance for most people is £1,055,000 in the tax year 2019-20. It applies to the total of all the pensions you have, including the value of pensions

What Happens To My Pension When I Die2019-04-25T15:10:39+01:00

Your unused pension pot wouldn’t normally be included in your estate for Inheritance Tax purposes.

In addition, if you die before age 75 your pension pot will pass tax free to your beneficiaries, provided the money is paid within two years of the pension provider becoming aware of your death.

If you die after the age of 75, then the remainder of your pension pot will still pass free of Inheritance Tax, but any benefits withdrawn will be taxed at the beneficiary’s marginal income tax rate.

Residential Nil Rate Band – What Is It?2019-04-25T15:10:45+01:00

From 6 April 2017, the Residential Nil Rate Band (RNRB) will be available for residences inherited by direct descendants (see below) in addition to the existing Nil-Rate Band (NRB) which is currently £325,000.

From 2017/18 the RNRB will be phased in, at this point the sum which will be able to be claimed is £100,000, increasing by £25,000 each year until 2020/21 when it reaches £175,000. The current rate of NRB will be frozen at £325,000.00 during this period.

As with the NRB, any unused RNRB can be transferred to a surviving spouse or civil partner, with the effect that the maximum combined IHT threshold for such couples will be a total of £1m by 6 April 2020.

What Is The Inheritance Tax Threshold2019-04-25T15:10:50+01:00

The current inheritance tax (IHT) threshold is £325,000 per person. It doubles to £650,000 for a married couple-as long as the first person to die leaves their entire estate to their partner.

How Does A SIPP Work (And Who Can Have One)2019-04-25T15:10:54+01:00

Saving for a retirement via a SIPP pension puts you in control of your financial future.

Just like any other kind of pension, Self-Invested Personal Pensions are designed to help you save for retirement and take an income when you reach it. Any individual who is resident in the UK under the age of 75 may make contributions to a SIPP, and in certain circumstances non-UK residents who have had UK earnings in previous years may also be eligible.

How To Avoid Inheritance Tax2019-04-25T15:10:59+01:00

There are effective and legitimate ways to mitigate against the impact of Inheritance Tax. But some of the most valuable exemptions must be used seven years before your death to be fully effective, so it makes sense to consider ways to plan for Inheritance Tax sooner rather than later.

How Do I Consolidate My Pensions2019-04-25T15:11:04+01:00

You will need to contact your pension providers to get transfer values. Then ask them to transfer the funds into your new pension plan.

Or, we can do all this work for you following a financial review.