A SIMPLE ALTERNATIVE

The UK's new 'simplified' pension regime kicked in from 6 April, 2006, the enabling legislation being largely enacted in FA2004. HMRC has summarised the new regime as follows (my comments are in italics): • The many existing sets of rules governing the taxation of pensions will be replaced with a single, uni- versal regime. This not quite true; (see below), there are now three regimes. • For the first time, everyone will be able to save in more than one pension scheme at the same time. This is true. However, registered schemes must be treated as one scheme when applying the annual and li...