Fisher Phillips Chartered Accountants | Spring Newsletter

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E: info@fisherphillips.co.uk | T: +44(0)20 7483 6100 | F: +44(0)20 7435 0152

Newsletter Spring 2012

Content

Lead articles...

Every silver lining has a cloud

The good seed

Late later latest

The artful lodger

Pension limits

Slicing and dicing

Company exits

Home thoughts from abroad

Business or personal?

Capital falling

Unrelieved interest

Digging up the dirt

Going quietly...

VAT...

Food and drink

Jackpot pays out?

Not so interesting

Know your supplier

Know your limitations

Law items...

Sacked or not sacked?

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Pension limits

There’s one thing that’s certain with pensions: by the time you come to draw yours, the rules will have changed several times. In the 2011/12 tax year, the maximum tax-allowable contribution to pension schemes has been cut to £50,000, with some complicated rules about using the limit of the previous three years if you didn’t pay £50,000 in each of them (even though the maximum was different under the previous rules).

If you retire with a pension pot bigger than your ‘lifetime allowance’, there’s a tax charge. In 2011/12, the limit is £1.8m. On 6 April 2012 it falls to £1.5m – still a lot of money, but the charge will be significant for someone who has a pot larger than that. You can apply for ‘fixed protection’ which avoids the charge on up to £1.8m, but restricts the amount you can contribute to a pension fund afterwards.

If you want some help understanding what you can put into pension funds, or whether your pension fund might trigger the lifetime allowance charge, we can help.