½Û×ÓÊÓƵ

Pension benefits from a defined contributions pension scheme (from 6 April 2015)

Produced by in association with John Hayward
Employment Tax
Guidance

Pension benefits from a defined contributions pension scheme (from 6 April 2015)

Produced by in association with John Hayward
Employment Tax
Guidance
imgtext

Introduction

Members of an occupational defined contribution scheme may take pension benefits in the form of a scheme pension, a lifetime annuity or in the form of income drawdown.

Scheme pension

The pension is provided from the registered pension scheme or from an insurance company selected by the scheme administrator. A scheme pension may be guaranteed for a certain term not exceeding 10 years. So if the member dies before that term has ended, the scheme pension will continue to be paid regardless of the end of the guarantee period, but to another person or to the deceased’s estate. The 10-year maximum term-certain period runs from the date the member first becomes entitled to the scheme pension.

Lifetime annuity

This is an annuity payable as a consequence of the annuity being secured through an insurance company which the scheme member has the opportunity to choose. This is an option, for example, for a member of a personal pension scheme. The 10-year maximum guaranteed period rule has been removed

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by
  • 29 Oct 2024 08:01

Popular Articles

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more Read more

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more Read more

Reverse charge ― buying in services from outside the UK

Reverse charge ― buying in services from outside the UKThis guidance note covers the reverse charge that applies to services that have been bought in from outside the UK. For an overview of VAT and international services more broadly, see the International services ― overview guidance note. For

15 Dec 2020 14:02 | Produced by Tolley Read more Read more