Pensions

Pension credit

The pension credit standard minimum guarantee will be uprated to £124 a week for single pensioners and £189 a week for couples in 2008/09.

Pension annuity reform

The Government has consulted with interested parties about the development of pension products that combine pension fund withdrawal with a guaranteed income. However, the Government has decided not to change the rules, because it says a change would increase the complexity and only affect a small number of people with large pension savings.

Pensions – spreading of contributions

The Finance Bill 2008 will contain legislation, effective from 9 October 2007, to prevent the ‘spreading rules’ for pension contribution tax relief being circumvented by routing payments through a new company.

Pensions – other changes

The inheritance of tax-relieved pension savings using scheme pensions or lifetime annuities will be subject to unauthorised payment tax charges and, where appropriate, inheritance tax. The measure is effective for surrenders of benefits after 9 October 2007 and for increases in pension rights attributable to the death of a member when the member dies after 5 April 2008.

Contents

	Introduction

	Inheritance tax

	Capital gains tax

	Residence and domicile

	Income tax

	Business taxation

	VAT

	Stamp duties

	Pensions

	Anti-avoidance

This guide is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking action on the basis of the contents of this publication. The guide represents our understanding of the law and HM Revenue & Customs practice as at October 2007, which are subject to change. These proposals may be changed in the Spring 2008 Budget and subsequent legislation.