DC scheme members could avoid 'lifetime' limit tax - SL

According to Standard Life's senior technical manager John Lawson, pension scheme members could avoid paying the 55% recovery charge on any funds above the proposed lifetime allowance by buying a "scheme pension". Latest amendments to pending pension rules set out in the Finance Bill states that schemes are allowed to pay a "scheme pension" which is limited for the purposes of the lifetime limit to a pension equal to 1/20th of the allowance, Lawson says. Effectively, this means a scheme member will be allowed a pension of about £75,000 a year based on the introductory £1.5m lifetime l...