IFAs hoping for further details on the Inland Revenue's proposed simplification rules will be highly disappointed by the Budget published today as it offers little new on the changes facing pensions in the next couple of years.
Chancellor Gordon Brown did announce the tax regime changes will come into effect by April 2006, with the lifetime allowance rising as follows:
- 2006 - £1.5m
- 2007 - £1.6m
- 2008 - £1.65m
- 2009 - £1.75m
- 2010 - £1.8m
And the annual allowance increasing as follows:
- 2006 - £215,000
- 2007 - £225,000
- 2008 - £235,000
- 2009 - £245,000
- 2010 - £255,000
However, besides announcing A-day and the lifetime limit, Brown's Budget statement does not reveal any further details regarding other aspects of simplifying the current regime.
In addition, a statement from the Inland Revenue does not offer advisers or the pension industry anything they did not already know.
Andy Bell, actuary and managing director at consultant firm A J Bell, says: "The pension industry has been in a state of paralysis since December 2002. The delay in implementation is sensible but does prolong the transitional period."IFAonline
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