| Personal pensions are
highly tax efficient and allow for considerable flexibility in the
types of investment you can undertake. As a business person, professional
or high earner in a business you may wish to take advantage of specialist
pensions including Self Invested Personal Pensions (SIPPs). These
schemes bring more control than a fund run by traditional pension
providers. It may be possible for you to purchase commercial premises
with your pension plan and then lease it back to your business. Why
pay a landlord rent, when you could increase the personal wealth you
generate from the business without paying tax on the rental income
or gain when you sell the property?
If you are a director of a company you will not be surprised that
your wealth management plan will include a range of financial expertise
to manage the wealth of your company and help you, personally, get
the best rewards from it.
As a Company Director there are opportunities to take advantage
of a wider range of financial products. We suggest SIPPs and occupational
pension schemes including Executive Pension Plans (EPP) and Small
Self Administered Schemes (SSAS) should be considered. These can
be an effective way of passing a company’s profits to the
directors, or owner directors, without paying tax and National Insurance.
Bonuses and salary sacrifices can also be put into a plan.
Consider whether your pension charges are too high and are your
funds well invested. Our pension wealth check could give you all
you want without making life difficult.
Pensions are after all just tax efficient savings plans with a
set of rules. A pension fund is the “saved pot of money”.
Since 6 April 2006 in simple form the rules are:
| MAXIMUM FUND AT RETIREMENT: |
£1.6 million |
| RETIREMENT AGE: |
50 to 75 (55 from 6/4/2010) |
| MAXIMUM LUMP SUM: |
25% of fund |
| MAXIMUM CONTRIBUTION (per year): |
100% of income (up to £225,000) |
There are other rules, so advice is important, however pensions
have been simplified significantly.
|
This Internet site is directed to UK residents only. You are responsible
for satisfying yourself that under the laws of your home jurisdiction you
may lawfully access this Internet site.
Alexander Grace Ltd is
authorised and regulated by The Financial Services Authority. Alexander Grace Ltd is entered on the FSA register
(www.fsa.gov.uk/register/) under reference 441359.
Website last changed: 23/11/2011
