'Irrational' 82% tax hitting ASP popularity

The SIPP provider says the Government's ‘irrational' tax policy on ASP is hitting modest retirement funds, rather than the very wealthy it was intended for. Currently, funds in ASP are subject to tax on death of 82%, but AJ Bell argues the tax should be reduced as it is affecting investors with relatively modest funds. However, according to a freedom of information request, around 40% of those moving to ASP at age 75 have a fund value of less than £100,000, meaning the tax is largely failing to hit the wealthy investors it was intended for. The firm believes the very rich are taking ...