Pensions - A Day 6 April 2006

April 2006

The new tax regime for pensions finally takes effect from 6 April 2006, referred to as ‘A’ day. There will be a single set of rules for all registered pension schemes. A summary of the rules is set out in the link below.

On budget day the government also published further guidance on how the inheritance tax provisions will apply to pension funds invested as an alternatively secured pension (ASP). The pensions tax rules require an individual to secure an income before they reach 75. Most people will have an annuity or scheme pension, but ASP has been provided as an alternative for those people who have a principled religious objection to annuitisation.

Internet Link:

For a summary of the new pension rules go to:
A day rules

HMRC budget notice

For details on ASP go to:
IHT and ASP

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