HIGHLIGHTS OF THE NEW "SIMPLIFIED" PENSION TAX REGIME

Governing legislation – Finance Act 2004, Finance Act 2005 and subsequent Statutory Instruments and Regulations.
New Regime starts on 6th April 2006.
All current and historic tax regimes will disappear and be amalgamated into one uniform regime.
Considerable tax exemptions for pensions arrangements continue.
Every tax-exempt pension arrangement will be “registered” rather than approved - a quicker and simpler process.
A wide range of strict compliance and audit regulations will be introduced including substantial new reporting requirements.
There will be self-assessment procedures for members - particularly where they benefit from scheme assets.
The tax treatment of non-registered schemes, such as FURBS, will change and these will be designated as “employer-financed retirement benefit schemes”.