More Flexibilityfor Drawdown Pensions
The Treasury have announced a consultation on pensions in drawdown. In particular they are looking to make ASP ( alternatively secured pension) to be much more flexible. Mark Hoban is looking at continuing the USP(unsecured pension) regime beyond the age of 75.
He is also proposing that unused funds in ASP will only attract tax a 55% rather than the penal rate of 82% which exists at the moment as unused ASP comes into the estate for Inheritance Tax purposes.
He is also proposing to make the drawdown fo income more flexible so that pensioners can take a greater income than that currently allowed providing they have suffcient income outside the pension to ensure that they do not become dependent on the state.
The consultation period is due to finish on September 10th. Watch this space!
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