Index Linked Savings Return

Tax free, index-linked, 5 year savings from National Savings and Investments.

Pension - Fixed Protection

Anyone without primary or enhanced protection can apply for the new fixed protection. Individuals are only likely to need fixed protection if they think that their benefits from all registered pension schemes will be more than £1.5 million when they take their benefits. With fixed protection there are restrictions on further benefit
accrual after 5 April 2012.

HMRC clarify £20,000 Minimum Income Requirement

Recent press articles have suggested that an individual wishing to make a flexible drawdown declaration must
be in receipt of secure pension income of at least £20,000 that is actually paid or payable in the tax year in
which the declaration is made and this would appear to be the correct understanding.
For example, if the secure income consisted of a conventional lifetime annuity for £30,000 payable monthly in
arrears (i.e. £2,500 per month) when the annuity was first taken out the monthly income would have to be
receivable for at least 8 months of that tax year in order for the £20,000 requirement to be reached in the first
tax year.
Source Threesixty services llp