ASP pot must be emptied to avoid tax warns Winterthur

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Although Budget changes mean any residual funds from ASP will be taxed at around 82%, Mike Morrison, pension strategy director at Winterthur, says the key is to make sure there is no money left in the pot to trigger the tax charge.

In his presentation at Winterthur's recent adviser roadshow, Morrison says the decision to treat the leftover funds as an unauthorised payment was “more radical than we thought”. Morrison comments: “An unauthorised payment is not levied on the scheme it is levied on the beneficiary. So someone who is expecting to receive an inheritance of 18% will suddenly be in the position of having to pay a tax charge that could be considerably more than the benefit being received.” There is some hope these details might change in the drafting of the Finance Bill 2007, he says. However, while many ha...

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