Income draw down rates reduce from April 2011

HMRC has released the new GAD Tables for 2011 which see the maximum income reduce from 120% to 100% in addition the tables create a lower income at certain ages.

Delay to pension income changes

The Government Actuary’s Department (GAD) may not be in a position to publish the revised tables of relevant annuity rates in time for the changes in April and in view of the delay, may state that the final cut off for when reference periods must use the new GAD tables will be the 5th June 2011. Providers may therefore be able to use the existing tables for reference periods starting before that date.

Unsecured Pension 5 yearly reviews – clarification from HMRC

Three Sixty LLP have received clarification from HMRC regarding the situation where a client in unsecured pension, requests a review now but their pension year does not commence until after 6th April 2011.
HMRC have confirmed that (as expected) although the request may have been made before 6th
April 2011, if the new reference period starts on or after 6th April 2011 then the new limits and rules will apply to the ongoing fund, i.e. three year cycle and 100% income limit.