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Finance
Act 2004
The
changes for pensions included in the Finance Act 2004 are
both radical and far-reaching. The aim is for 'Pensions
Simplification' - one size fits all. This is a laudable
aim but not, in our view, fully achieved which is hardly
surprising. The pension provisions of the Act come into
force on 6th April 2006, but there is still a great deal
of debate taking place and we still await a fair amount
of detail.
Because of the delay until 6th April 2006, there are a large
number of opportunities both before and after this date.
These will require careful planning and there is a great
deal of scope for Independent Financial Advisers to discuss
these opportunities with their clients.
Typically, this advice will be required in:
Taxation Planning - Personal, Capital Gains Tax
Business Planning - Profit
Corporate Structure - Corporation Tax
Retirement Planning - Timing pre or post 6th
April 2006
Estate Planning - Inheritance Tax, passing on
wealth etc.
In addition, residential property will now be allowed as a
SIPP investment, meaning that people with buy-to-let portfolios
will be able to use their SIPP to buy them as investments,
provided they have sufficient funds. They will need special
advice as to how to go about it.
The maximum amount allowed in an individual's fund - the Lifetime
Limit - is set at £1.5m from 6th April 2006. Clients
will need advice if they already have in excess of this or,
if necessary, how to exceed the limit prior to 6th April 2006.
There is a great deal of detail and significant opportunities
contained in the Act. If you want more details, please click
on the titles below to download the relevant document.
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