ASP changes amount to 'legalised theft'

In a communication sent out to advisers after last week's announcement, Andy Bell, managing director of A.J Bell, suggests the introduction of a tax rate of “between 80% and 90% on ASP funds on death would make even Dick Turpin blush”. Although he welcomes the introduction of a minimum income level of 65% and an increase in the maximum income level of ASPs to 90% of a comparable annuity for a 75-year-old, he says the proposed tax treatment of funds left in ASP after a member dies is “frankly ludicrous”. And Bell points out, although the government says the changes will result in a tax cha...