PBR: Limits placed on alternatively secured pension funds
The rules on alternatively secured pensions (ASPs) are to be tightened from 6 April 2007.
An ASP is similar to an unsecured pension, but has slightly different rules intended to cater for religious groups who have principled objections to buying an annuity.
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PBR: Limits placed on alternatively secured pension funds
Your summary of the changes to ASPs proposed in the pre budget report misses the main change completely! Why have you not mentioned that anything left after the death of the pensioner and any dependants will be taxed at up to 70% and then inheritance tax will apply as well?
Practicalities
Having had roughly one half of my pension fund converted into annuities on the guaranteed basis offered when I was young, the remaining half of my fund has been reserved for my widow in an alternatively secured fund, so that she may buy an annuity at her age on my death.
It is to be hoped that the final legislation will protect this form of practical arrangement.
Support for the married unit or not
Would my husband and I be better therefore getting divorced and going for the pension splitting rules in order to aviod the 70% inheritence tax charge on the first death?