Nigel Sloam Blog

The 26 November Budget: Implications for Pension Savers

Thu, 27 Nov 2025 00:00:00 +0000

Rachel Reeves’ 26^th November Budget confirmed that that there would be no immediate fresh changes to pension taxation – despite the various rumours that had emanated from Government over recent months.

The current system of tax relief on employer and employee contributions and the gross accrual of investment returns within pension schemes – exempt from income or capital gains taxes - continues, as do the current limits for drawing pension commencement lump sums – “tax free cash”.

The Chancellor has heralded future changes to the tax and National Insurance regime governing “salary sacrifice” contributions – but these will not take effect until after 6 April 2029. The imposition of IHT on residual pension benefits on death on or after 6 April 2027 (if not left to a surviving spouse), announced in last year’s Budget will proceed, although the detailed rules are still being argued.

The Budget has, however, confirmed

the direction of “fiscal travel” of this Government and its backbenchers;
That most earners and savers will have reduced net of tax income in the coming years and that
Investors’ net returns from directly held investments – cash, stocks, shares or property are likely to fall.

In consequence of the latter, the advantages of saving through pension funds have been enhanced.

As a result of the Government-stimulated months of pre-Budget rumours, some pension scheme members have chosen to accelerate their withdrawals of tax-free cash sums to protect these. In certain cases, the rumours have stimulated withdrawals, rather earlier than would otherwise have been the case.

During this process, everyone experienced the length time taken to obtain information from external pension providers, investment managers and insurance companies - and we should all learn from this experience.

Lessons for the future include:

Concentrating pension resources in the most flexible of formats gives greater control.
Therefore, collecting pension arrangements into member directed formats (SSAS’s or SIPPs) is highly desirable and should be arranged as soon as possible – provided that no penalties, significant extra costs or loss of guarantees are incurred..
For those who could benefit from salary sacrifice arrangements, there are four tax years remaining in which such arrangements can be operated without penalty. Full advantage should be taken of this.
Opportunities for proper planning, without the threat of deadlines should be seized.
Over the coming year, there are unique such opportunities.
The need to interact the planning of interaction of pension resources with other ‘cupboards of wealth’ has now become vital.

Our Response to the HMRC Technical Consultation on Inheritance Tax on Pensions

Thu, 23 Jan 2025 00:00:00 +0000

Nigel Sloam & Co Actuaries and Consultants and NSS Trustees Limited's Response to the HMRC Technical Consultation Inheritance Tax on Pensions: Liability, Reporting and Payment

1. Introduction

Nigel Sloam & Co is an independent firm of Actuaries and Consultants established in 1979 and is regulated by the Financial Conduct Authority (‘FCA’) and the Institute and Faculty of Actuaries (‘IFoA’).

The firm has been involved in providing actuarial, trustee, administrative and consultancy services to all types of pension arrangements and has a particular expertise in respect of discretionary trust-based UK HMRC Registered (formerly ‘Approved’) Pension Schemes, many of which are “member directed”.

Another company in our group, NSS Trustees Limited, which is separately authorised by the FCA, acts as both a Self-Invested Personal Pension (‘SIPP’) Operator and as independent trustee of many occupational pension schemes.

Our response below is produced to include input from both firms, in the light of our long experience. We appreciate and thank you for the opportunity to contribute to this process.

2. Executive Summary

We have grave concerns about many significant practical issues, raised by the Budget proposals, which we believe will hamper severely the necessary and proper use of trustee discretion as well as creating a real and indeed huge unfairness between beneficiaries of defined contribution pension schemes (now the modal pension format in the UK) and beneficiaries of defined benefit pension schemes.

The problems will arise from the attempt to integrate death benefits from trust-based pension schemes, where there is discretion, into the current Inheritance Tax (’IHT’) regime. We believe and recommend that Government Policy would be better achieved if there was a parallel Pensions Inheritance regime.

The contents of the Consultation Document would appear to have overlooked the variety of assets that have been acquired in pension schemes, many of which havefinanced and continue to finance UK economic growth, often when alternative finance was unavailable.

Specifically, the current proposals have not taken account of the relatively illiquid nature of many pension scheme investments. For example, loans to private companies, investments in private equity and commercial property which have stimulated the economy are commonly found in pension schemes and cannot be easily realised within 6 months. In addition, other investments including NS&I products, ‘unbreakable’ cash deposits, and many collective investments may not be realisable within a relatively short period.

A 6-month deadline on pension funds to pay over IHT may a) be impossible to achieve, b) result in penalties for beneficiaries of the deceased (and possibly lower tax revenue) and c) impose penalties on other members of the scheme who have not died and who benefit from assets held under common trusts. In addition, there will be valuation problems.

Trustees and Scheme Administrators are obliged to take account, when paying discretionary death benefits, of the financial circumstances of potential beneficiaries. From long practical experience, we know that this information is not readily available. In these circumstances, it is unfair and unreasonable to impose a 6-month payment requirement. Based on experience, we believe that 2 years is a reasonable time frame.

We do not believe that it is appropriate or practical for the Pension Scheme Administrator (‘PSA’) to have the responsibilities set out in the consultation document in respect of Inheritance Tax – certainly within a 6-month timescale. We believe that it would be better if there was a separate Pension Inheritance Tax regime with the PSA responsible to make payments within two years.

Under the current IHT regime, legal personal representatives may pay IHT over a ten- year period, where there are illiquid assets such as property. We believe that similar facilities should be granted in respect of similar pension assets.

We also believe that it is unfair that prime beneficiaries, who are neither married nor in a civil partnership with a deceased member of a defined contribution pension scheme will be disadvantaged on that member’s death by the proposed changes. This is in contrast with the position that will apply to such people in defined benefit schemes – and is grossly unjust.

Similarly, we are also concerned at the unfairness of treatment that will arise on the death of a member of a defined contribution scheme, for financial dependants such as young children. The proposal implies that whereas pensions paid to children of members of defined benefit schemes will not be subjected first to IHT, the children of members of defined contribution schemes will have their benefits so reduced. We believe and recommend that there should be uniform treatment.

Parliament over years has encouraged and provided tax reliefs on pension contributions, specifically to facilitate the payment of pensions to scheme members in retirement and to their dependants thereafter. The current proposals will affect seriously the ability to provide dependants’ pensions from defined contribution schemes and we would highlight that there is a difference between providing dependants’ pensions and simply giving a bounty on death.

We are also concerned that the imposition of Inheritance Tax in the manner suggested currently may lead to residual pension benefits being allocated for tax considerations, rather than for needs.

It is our view that the trust nature of pension funds conflict with the extension of IHT per se to such schemes. We believe that the Government objectives would be better achieved by the substitution of a separate Pensions Death Benefit Tax regime for the proposed extension of IHT. If this suggestion was accepted, then tax collection could operate utilising the existing Real Time Information (‘RTI’) system.

3. Consulation Response

Question 1: Do you agree that PSAs should only be required to report unused pension funds or death benefits of scheme members to HMRC when there is an Inheritance Tax liability on those funds or death benefits?

We believe that PSAs should only report to HMRC in cases where there are both a) unused pension funds on a member’s death and b) where there is an IHT (or similar) charge. We believe that in practice it will be impossible to make such reports within a 6-month deadline from the date of death and we believe that 2 years is much more realistic.

If the Proposed tax was renamed and redevised as a Pensions Death Benefit Tax – rather than IHT – there is indeed the potential to utilise and adapt the current RTI system for reporting such, rather than creating and/or using another system.

Question 2: How are PSAs likely to respond if they have not received all the relevant information from the PR to pay any Inheritance Tax due on a pension by the 6-month payment deadline?

As indicated above, we believe that it will be impossible in many cases for PSAs to provide meaningful responses within 6 months of a members’ death. This position results from the combination of a) a lack of information from PRs and b) trustees not being given sufficient time to perform their legal duties and responsibilities in the exercise of their discretions.

A 6-month payment deadline is not realistic for Pension Scheme Administrators (‘PSAs’) who currently have a 24-month timeframe for allocation of benefits without incurring additional tax charges. We believe that the reporting period should also be 24 months. The current timeframe also commences from the date the PSA could have reasonably known of the member’s death.

As implied in our summary, pension schemes may contain assets that are illiquid and/or are partially owned by the pension scheme trustees, and which must be valued by professionals, which takes time. We would not wish the unrealistic timeframe to force PSAs to use ‘forced-sale’ valuations of such assets – or indeed move to action such sales – which would potentially disadvantage not just the beneficiaries of the deceased pension scheme member but also others with interests in such assets in common trusts.

PSAs and Trustees need to undertake detailed and extensive enquiries into a deceased pension member’s family circumstances to comply with their obligations under general trust law, as well as considering any expression of wish and nomination provided by a member during his/her lifetime – all in the context of all relevant potential beneficiaries. The current 24-month time frame allows for the best possible decisions to be made with appropriate consideration of all the circumstances. A 6-month deadline is simply insufficient and does not take account of the potential vulnerabilities of beneficiaries at a very difficult time.

If the proposed unrealistic timeframe is enforced, there is a huge risk of bad decisions being made without proper consideration and with potential harm to the interest of beneficiaries.

Question 3: What action, if any, could government take to ensure that PSAs can fulfil their Inheritance Tax liabilities before the Inheritance Tax payment deadline while also meeting their separate obligations to beneficiaries?

We believe the reporting and tax payment deadlines should be extended to 24 months. In addition, we believe that consideration should be given to a separate Pensions Death Benefits Tax regime.

The PSA may assist in settling taxes due from funds under its control – but it should not be forced to do so in a manner which will a) harm beneficiaries of a deceased member b) harm other members of the scheme and c) potentially reduce the amounts of tax.

PSAs should be enabled to spread the appropriate tax payments in respect of illiquid assets, in similar fashion to what is permitted to PRs currently under IHT.

The position of income benefits to financial dependants should, in our view, be excluded from the scope of death benefit taxation – as otherwise there will be grave injustice as compared with the position of those in defined benefits schemes.

Question 4: Do you have any views on PSAs reporting and paying Inheritance Tax and late payment interest charges via the Accounting for Tax return?

We reiterate our previous comments regarding:

i. The need for a 24 (rather than 6-month) period
ii. The desirability of a special Pensions Death Benefit regime.
iii. Treatment of illiquid assets, which would compare with that under the current IHT regime.

If our suggestions were adopted then – as indicated above – it would be possible to adapt and use the current Real Time Information (‘RTI’) system for reporting such rather than creating and/or using another system.

Question 5: Do you agree that 12 months after end of the month in which the member died is the appropriate point for their beneficiaries to become jointly and severally liable for the payment of Inheritance Tax?

Once initial distributions to beneficiaries and any tax has been paid by the PSA any further tax liabilities should follow the beneficiaries and the responsibilities of the PSA should be discharged and end.

The PSA should only be liable in any event for tax on undistributed funds that remain under its or the Trustees’ control.

Question 6: What is the most appropriate means of identifying or contacting beneficiaries if either the PR or HMRC realises that an amendment is needed after Inheritance Tax has been paid? Should PSAs be required to retain the details of beneficiaries for a certain period?

We believe that HMRC and the PR should contact beneficiaries who received funds to deal with any adjustments.

The PSA will retain records under their information retention policy and requirements, but we would highlight that these details could be out of date by the time they are contacted in respect of any adjustment.

We would also highlight the additional difficulties that may arise if potential beneficiaries are or become non-UK resident – and PSAs should not have responsibilities as a result.

Question 7: What are your views on the process and information sharing requirements set out above?

It is highly unrealistic to assume that PRs will be able to come forward promptly, following the death of a member, to confirm the position of the member’s estate to the PSA. The consultation assumes that a lay PR will be aware of what is required of them.

Similarly, it is highly unrealistic to expect that PSAs and trustees will be able to ascertain the financial position of potential beneficiaries within a 6-month period. Again, it is assumed incorrectly in the consultation that potential beneficiaries are all known and are resident in the UK.

We have commented above on the need for trustees and the PSA to undertake detailed and extensive enquiries into a deceased pension member’s circumstances in order to comply with their legal obligations and the current 24-month time frame.

If the proposed much shorter timeframes are enforced, there are clearly huge risks of decisions being made without proper consideration and with potential harm to the interest of beneficiaries.

We do not see how this aligns with regulatory and fiduciary duties.

As indicated previously, we are also concerned about the position of financial dependants of a member of a defined contribution pension scheme on death. There is potential, under the current proposals, for substantial injustice vis a vis the position of dependants benefiting from defined benefits schemes. We believe that such injustice will stimulate a huge public outcry and that all financial dependants should be treated uniformly whatever the format of the pension scheme.

Defined contribution pension schemes can – and currently do – make vital payments of income to financial dependants upon the death of a pension scheme member and we are concerned about the impact of the proposals on a deceased pension member’s remaining dependants.

Question 8: Are there any scenarios which would not fit neatly into the typical process outlined above? How might we address these?

As indicated above, there appears to have been no consideration of the type of assets that may be included in defined contribution pension schemes – including certain NS&I products which have fixed terms, ‘unbreakable’ cash deposits for a specified term, ‘real’ commercial property, collective investments or funds where the investment manager has restricted the ability to encash for a period, shares in and/or loans to private companies etc – and the ability to liquidate such.

For example, a considerable number of Member-directed pension schemes include commercial property which is leased back – on a commercial arm’s length basis – to members’ own small and medium-sized businesses. The proposed changes would have significant negative consequences for small and medium-sized UK business owners who have used their own pension savings to invest in and to assist their businesses.

There also appears to be no consideration of the fact that most defined contribution schemes generally involve multiple members whose allocations within the pension scheme may be spread across several different asset classes and the time that may be required to value such assets and calculate a deceased member’s interest – and then deal with the assets in a fair way to settle the proposed new taxes.

We believe that the current 24-month time frame to deal with matters should be retained. We also believe that if Inheritance Tax is to apply to pension schemes, then any easements to deal with illiquid assets in a non-pension context should be extended to pension schemes.

Question 9: Do you have any other views on the proposal to make PSAs liable for reporting details of unused pension funds and death benefits directly to HMRC and paying any Inheritance Tax due on those benefits? Are there any feasible alternatives to this model?

We believe that the process and timeframes indicated in the consultation are unrealistic with significant risk of harm to beneficiaries and the breach of the Consumer Duty principles established by the FCA.

We believe that PSAs should only be responsible for the payment of taxes from funds under their or trustees’ control

a) Within a 24-month period of a member’s death and

b) Thereafter only in respect of undistributed funds which remain under trustees and

PSA’s control.

As indicated above, if changes are to be made, it is our view that consideration should be given to previous regimes governing UK HMRC Registered Pension Schemes in which standalone specific pension tax charges could be levied upon death rather than trying to harmonise the Inheritance Tax regime with pension funds. If this suggestion is adopted, then existing settlement and reporting systems could be used.

We believe this would significantly reduce the complexity inherent in the current proposal and allow distributions to beneficiaries and payment of appropriate tax to HMRC in a much more efficient manner.

Nigel Sloam and Arun Ramaswamy

for Nigel Sloam & Co and NSS Trustees Ltd

What the Tax Changes in the Spring 2023 Budget Means For Your Pension

Thu, 16 Mar 2023 00:00:00 +0000

In the Spring Budget 2023, Jeremy Hunt simplified the pension tax regime and removed a major restriction which had limited pension saving and pension allowance for high earners.

Some of the key changes include:

Abolition of the “Lifetime Allowance”
Removal of the Lifetime Allowance Charge
Increase in the Annual Allowance
Increase in the Money Purchase Annual Allowance Limit
Increase in the Limit for Those Subject to the Tapered Annual Allowance
Tax Free Cash Sums

We summarise below our understanding of the principal changes announced. (These may be subject to further adjustment over the coming weeks and during the passage of the Finance Bill.)

Abolition of the “Lifetime Allowance”

The “Lifetime Allowance” on pension savings will be removed in a future Finance Bill with effect from April 2024.

Hitherto, individuals who have accumulated pension savings in excess of the Lifetime Allowance were subject to a tax charge (Lifetime Allowance Charge (‘LAC’)) at certain key events. Some individuals, however, were exempted from the full effects of this charge as a result of obtaining one of the seven forms of “Protection”.

Removal of the Lifetime Allowance Charge

With effect from 6th April 2023, the LAC is being abolished. No pension lifetime allowance charge will apply from 6 April 2023 on any event which would have triggered such a charge previously.

Increase in the Annual Allowance

Previously pension contributions have been limited to a maximum of £40,000 per annum for most people. With effect from 6th April 2023, this maximum will be increased to £60,000. Individuals who have not utilised fully previous annual allowances will continue to be able to carry these forward from the 3 previous years as before.

Increase in the Money Purchase Annual Allowance Limit

Where certain people are drawing pensions and yet still wish to contribute to their pension scheme, there was a further restriction on maximum contributions. The limit on such contributions was known as the Money Purchase Annual Allowance. With effect from 6th April 2023, this limit has been raised from £4,000 to £10,000.

Increase in the Limit for Those Subject to the Tapered Annual Allowance

The Annual Allowance is reduced using a tapering mechanism for those deemed “High Earners”. For those with total income – including company pension contributions – exceeding £312,000 per annum, the impact of this was to reduce the maximum pension contribution to £4,000 per annum.

In his Budget, Jeremy Hunt increased this to £10,000 for those High Earners who are impacted by the taper to the maximum extent.

The level at which the Tapered Annual Allowance can start to apply has also been increased from the current level of £240,000 per annum to £260,000 per annum with effect from 6th April 2023.

Tax Free Cash Sums

The maximum Pension Commencement Lump Sum (tax-free cash) has hitherto been set as one-quarter of funds available up to the Lifetime Allowance with exemptions for those with “Protection”.

We understand that with effect from 6th April 2023, the maximum tax-free lump sum will continue to be one-quarter of the funds accumulated but subject to a limit frozen at £268,275 – one-quarter of the current LTA.

For those who enjoy “Protection” under the 7 existing protection regimes, their ability to draw a higher tax-free cash appears unimpeded by the Budget.

What Does the 2023 Budget Mean For Your Pension?

The Budget simplifies the pension tax regime considerably. Some complexities and questions will remain.

We welcome the elimination of the Lifetime Allowance Charge and the increase in contributions limits from 6th April 2023. We also sympathise with those who have suffered the LAC previously. The resultant position appears that:

As a result of these changes, there is no overall limit on pension saving.
Maximum pension contributions will increase to £60,000 from 6 April 2023 for those to whom the standard allowance is available.
Existing rights to draw tax free cash, which have been protected, are not affected.
Some technical anomalies persist for the tax year 23-24 until the formal abolition of the Lifetime Allowance by 6 April 2024.
The threat of a high exposure to the LAC on events that would occur after 6 April 2023 appears to have been eliminated.
These changes will not apply retrospectively prior to 6 April 2023.

In our view – and of course, always subject to any further changes yet to be announced or incorporated in Finance Bill 2023 – the above removes many of the inhibiting factors to pension savings.

Overall the proposed changes are highly welcome.

What Should I Do For My Pension After the 2023 Budget?

We believe that clients need to consider the following action points with us and their tax advisors.

For those accruing pension benefits, there is an opportunity to revisit contribution strategies to take advantage of the removal of the lifetime allowance and the increased contribution limit. Careful allowance will need to be taken of the new taper rules, which appear to remain complex.
For clients contemplating drawing pension benefits, the strategy for and timing of withdrawals will need to be revisited to take account of the increased contribution opportunities whilst also considering any existing protections obtained.
For clients who have already drawn benefits, the threat of the LAC at age 75 appears to be removed.
For all clients, there is no need to adopt a restricted investment strategy. Henceforth, investments can be chosen for their merits without the worry of crossing limits.

We will be happy to explore all of this with you over the coming weeks. Please feel free to get in touch with our team to discuss these changes.

News Update: International Association of Consulting Actuaries Chairman

Wed, 20 May 2020 00:00:00 +0100

We are very pleased to announce that Nigel Sloam became Chairman of the International Association of Consulting Actuaries (IACA) on 12th May 2020.

This is an international organisation representing consulting actuaries internationally, and Nigel has been a committee member since 2012 and Vice-Chair and Chair-Elect for the last two years.

Nigel’s appointment reflects the international nature of our involvement all over the world, which in turn was stimulated by our clients’ personal and business involvement in every continent.

Budget 2020

Wed, 11 Mar 2020 00:00:00 +0000

In his Budget today Chancellor Rishi Sunak has relieved considerably some of the currently onerous restrictions on pension contributions for higher earners.

For the tax year 2020/21, reductions in the annual maximum contribution limit will only apply to people:

a) whose taxable income exceeds £200,000 (previously £110,000) and

b) additionally, whose taxable income plus imputed employer pension contribution exceeds £240,000 (previously £150,000.)

For the very highest earners - with taxable income and imputed employer contributions in excess of £300,000 -the £40,000 limit will taper down to a maximum of £4,000 (previously £10,000).

Many individuals, whose pension contributions have been restricted may now have far greater opportunities for pensions savings in the new tax year.

A Possible HMRC Threat To SSASs With Dormant Companies

Fri, 28 Jun 2019 00:00:00 +0100

HMRC took extended powers in Finance Act 2018 to limit both the registration of certain new pension schemes and de-register some existing schemes. This was intended, so they said, to limit the scope for pension scams and “pension liberation” schemes.

At the time many advisors, including us, warned that the powers taken were draconian and too wide ranging and could be used to justify action against legitimate pension schemes. In response, a relevant Pensions Minister gave assurances – to our MP amongst others - that HMRC would not use its power in relation to legitimate schemes. Despite these assurances HMRC appear to have decided, for no obvious reason, to target schemes where the Employer has become dormant. HMRC does not appear to be looking currently at schemes where the Employer has been wound up.

To read the rest of this news item, please click here

Lexis Nexis Article March 2017

Tue, 14 Mar 2017 00:00:00 +0000

Pensions analysis: The government has introduced a charge on transfers to qualifying recognised overseas pension schemes (QROPS). Nigel Sloam, senior partner at Nigel Sloam & Co Actuaries and Consultants, and Liz Fallon, partner at Eversheds Sutherland, discuss the proposed changes.

Please click here for the full article.

This article was first published on Lexis®PSL Pensions analysis on 14 March 2017. Click for a free trial of Lexis®PSL.

Lexis Nexis Article January 2017

Thu, 19 Jan 2017 00:00:00 +0000

Pensions analysis: The government plans to align the UK tax treatment of foreign pensions more closely with the UK’s domestic pension tax regime. Nigel Sloam, senior partner at Nigel Sloam & Co Actuaries and Consultants, discusses the proposed changes with LexisNexis.

Click here to see the full article

New Partners

Sun, 01 Jan 2017 00:00:00 +0000

We are very pleased to announce that Craig Avis, Arun Ramaswamy and Oliver Sloam have been appointed as Partners.

Craig Avis joined Nigel Sloam & Co in 2006 and formerly held the post of Administration Manager for our SSASs and he will continue to provide pension consultancy advice for our clients

Arun Ramaswamy joined the firm in 2006 and is one of our technical pension specialist. He provides pension consultancy advice in relation to UK and overseas clients.

Oliver Sloam joined the firm in 2014 and he is a qualified lawyer. He is involved in developing and co-ordinating all legal issues of the firm.

Pension Planning and the NHS

Tue, 22 Mar 2016 00:00:00 +0000

We have developed an expertise in advising clients with medical backgrounds in relation to benefits accumulated in the NHS Pension Scheme as well as in other pension arrangements and the range of options available. In particular, we have helped individuals when they have been required to make choices in relation to the NHS Pension Scheme and also where their total pension accumulation approaches or exceeds the Lifetime Allowance. In these circumstances, the timing and order of drawing benefits from various arrangements can have a significant impact on the overall net worth of the total benefits.

We provide:

Review of benefits in the NHS Pension Scheme and any other pension arrangements held and the options available.
Assessment of the impact of the Lifetime Allowance on total pension accumulation and the effect of the Annual Allowance on continuing pension accrual.
Advice on the merits of making additional contributions to supplement retirement provision.
Advice in relation to the impact of changes in the pensions tax regime and assistance with registering for transitional protection of higher personal allowances where relevant.
Advice on strategy for drawing benefits, including assessment of the impact of drawing benefits at various times and – where there is more than one pension arrangement – the impact of drawing benefits in a different order.
Actuarial evaluation of the value of benefits under different options to enable decisions to be made, with regard to timing of drawing benefits from various pension arrangements.
Advice on the merits of utilising personal pension funds in different structures, where appropriate, to provide greater investment flexibility, which may be particularly useful for those in private practice.

Our Experience

We have 35 years’ experience advising clients in general or private practice and we work closely with their other professional advisers from leading law and accountancy firms.

Pension Planning for Sports Professionals

Fri, 11 Mar 2016 00:00:00 +0000

There is, typically, only a short window in the professional careers of sportsmen or women for making future financial provision. Given the unique and unrivalled contribution, investment and benefit flexibility of pension schemes – plus their beneficial tax treatment – it is vital that full advantage is taken of the pension planning opportunities within this window.

Advice to Sporting Professionals

We provide specific, tailored individual advice to our sports clients, their managers, agents and other advisors (or unions) on a wide range of related areas including:

Pensions and actuarial advice on existing pension entitlements and recommending how these could be adapted to meet the individual’s needs and ambitions.
Optimising pension and benefit arrangements when negotiating new contracts
Providing optimum pension structures for both active and retired sports professionals - including SSASs and SIPPs
Advice on offshore pension structures and schemes on a move abroad, during a career or thereafter. We advise our clients on the suitability of international schemes – including QROPS and QNUPS - depending on the individual’s needs.
Advice to sports professionals on how pensions should be utilised and dealt with in the event of divorce.
Investment advice and consultancy, manager selection and assessment of risk profiles.

Advice to Clubs and Professional Bodies

We work with clubs, sporting organisations and professional sporting bodies advising on optimum pension and contribution structures both for directors and senior management as well as sports professionals and other employees.

Agents, accountants, lawyers and other professional advisers

We work closely not only with our clients but also with their professional advisors including leading agents, accountants, lawyers and investment managers in order to ensure that our advice dovetails with all aspects of financial and wealth planning.

Our Experience

Our firm has been established for over 35 years, during which time we have provided “state of the art”, expert advice on the complete spectrum of pensions, actuarial, investment and related advice to an exceptionally diverse clientele. Our clients include entrepreneurs, professionals, senior executives of quoted and other companies, politicians – as well as individual artists, writers, musicians, sports personalities and other entertainers.

Our partners and other colleagues, currently lecture regularly on UK and international aspects of pension planning to wide-ranging professional and other audiences in the UK and many territories abroad.

Our offices are situated in London and Monaco.

Pensions and Employment

Fri, 11 Mar 2016 00:00:00 +0000

Advice to Employees

When an employee loses their livelihood as a result of redundancy or unfair dismissal, actuarial calculations need to be made as to the value of the loss of their net income and other benefits, with a view to placing the individual back in the position that would have applied had the loss not occurred.

We also advise employees changing jobs on the most suitable pension and contribution structure as part of their new remuneration package.

Specifically, we advise employees on:

Pension structuring on changing jobs or redundancy
Pension structuring following Unfair Dismissal
Optimising pension and benefit arrangements when negotiating new contracts
Devising pension arrangements when moving abroad
Acting as expert witness

Advice to Employers

When circumstances change and key executives need to be made redundant, employers also require actuarial evaluations of loss of pension rights to assist in negotiations.

We advise employers on:

Reviewing and advising on new or existing pension structures and contributions for both senior management and regular employees
Devising pension arrangements and other provisions for key employees
Pensions aspects and usefulness on redundancy

Our Experience

We have specialised in advising companies large and small, their directors and senior management as well as individual personnel by providing actuarial assessment and reports together with a full and innovative range of employment pension planning and investment solutions.

We work closely with employment solicitors from leading law firms and other advisers

Fixed Protection 2016

Fri, 29 Jan 2016 00:00:00 +0000

In recent times, UK Governments have never failed to resist the temptation to modify the pensions tax regime - and this year is no exception! For the third time in four years, the Government is reducing the maximum pension accumulation (known as the Standard Lifetime Allowance “SLA”) that can be accumulated without tax for an individual – unless some “Protection” is in place.

From 6th April 2016, the SLA will be reduced to £1 million from the current £1.25 million level. Any excess funds accumulated over the SLA (or a previously protected higher limit) will be subject to a “Lifetime Allowance Charge” of 25%, levied at a “benefit crystallisation event”.

For the full article please click here.

Summer Budget

Fri, 17 Jul 2015 00:00:00 +0100

George Osborne in his 8th July 2015 Budget proposed radical changes to wealth and pensions taxation. These changes must be viewed in the context of the other dramatic taxation reforms, legislated in 2014, which permit full lifetime access to money purchase pension pots - plus the ability to leave pension savings, either tax free on death before age 75 - or subject to marginal Income Tax on death thereafter.

Key pension measures in the Budget are as follows:

From 6th April 2016, a reduction in the limits on tax relieved pension contributions for “high earners” – but with some opportunities for additional contributions in the current tax year.
Alignment of “Pensions Input Periods” with the fiscal year from 2016 – and with transition measures for the current year.
Confirmation of the reduction of the Lifetime Allowance from £1.25 million to £1 million with effect from 6 April 2016 – but with opportunities for protection still available.
Further possible reductions in the tax payable on lump sum death benefits – where a pension scheme member dies post 75.
A complete review of the Pension Taxation System.
Implementation of a secondary annuity market from 2017.

To see the full article please click here.

Taxation of Pensions Act

Fri, 19 Dec 2014 00:00:00 +0000

Further to our recent email following the Chancellor’s Autumn Statement, we wish to advise you that the Taxation of Pensions Bill received Royal Assent on 17 December 2014 and is now an Act of Parliament.

The full text of the Act was published on the 19 December 2014 and the principal provisions will take effect from 6 April 2015.

"A brave new world" - Pensions after The Chancellor's Autumn Statement

Mon, 08 Dec 2014 00:00:00 +0000

This Statement confirmed radical changes to the pension tax regime. Some of these appear to be subject to all Party agreement - but others remain controversial. The result is that pension schemes are reinforced as the most flexible and tax efficient savings "cupboard" for an individual and for those who benefit on his/her death.

The governing legislation for the new changes is contained in the Taxation of Pensions Bill, currently before Parliament. This is intended to be enacted early in 2015 and is scheduled to come into effect on 6th April 2015. (Clearly if this Bill did not pass, as currently drafted, The Chancellor’s Statement will be negated and our conclusions and comments will alter!)

The principal changes that are being introduced may be summarised simply as follows:

Additional drawing flexibility for members of SSASs, SIPPs and some other money purchase schemes with unrestricted access to all funds – subject to Income Tax.
Dramatic reductions in the tax on death benefits from such schemes – including a fall to zero tax in some circumstances.
Considerably increased flexibility in distributing death benefits – with the new option of leaving a continuing tax exempt pension fund to all desired beneficiaries - not just “financial dependants”.
The chance to pay pension contributions when in Flexible Drawdown - but reduced maximum contributions in drawdown, where this commences after 5th April 2015.

To see our full article please click here

Budget 2014 - Freedom & Choice in Pensions - At a Tax Cost!

Thu, 20 Mar 2014 00:00:00 +0000

In yesterday's Budget the Chancellor announced - as they do - further changes and proposals to change the basis of taxation of pension schemes. Some changes will take effect from 27th March 2014 while other proposals are subject to a consultation process. The Government hopes to enact and effect the other proposals in 2015.

The changes are welcome in that they will certainly give more flexibility to members of all of our pension schemes. At the same time it should be realised that utilising the extra flexibility will generate substantial tax revenue for the Government earlier!

The current Coalition Government has confirmed that tax free commencement lump sums will continue to be available. There are no current proposals by the Coalition to make further changes to the Standard Lifetime Allowance (SLA) – the cap on tax relieved pension savings, which is set at £1.25 million from 6 April 2014.

Similarly, the Coalition is not proposing to alter the current format for tax relief on pension contributions – but is considering the possibility of allowing those aged 75 and over to continue making tax relieved contributions.

We note, however, that both the Labour and Liberal parties have indicated that they may potentially review higher rate tax relief on pension contributions and/or the Standard Lifetime Allowance should they come into Government following the next General Election.

Please see our full circular by clicking here

New Income Portfolio Launched

Wed, 01 May 2013 00:00:00 +0100

Following the success of our UK Equity, Overseas Equity and Bond Portfolios and in response to demand from our clients, we have launched a new Income Portfolio.

Over the last year to 30 April 2013 our portfolios have acheived the following returns outperforming the sector averages.

UK Equity Portfolio 20.1%

Overseas Portfolio 17.9%

Bond Portfolio 12.8%

The new Income Portfolio consists of a range of funds from a variety of sectors, including UK and overseas equity, property and bond funds. The portfolio will target income funds and the initial income will be just below 5% per annum with potential for capital growth.

If you would like to register your interest for the Income portfolio please contact one of our investment consultants.

New Partner Appointed!

Wed, 23 Jan 2013 00:00:00 +0000

We are proud to announce that Aaron Segal has been apppointed a Partner within Nigel Sloam & Co. Aaron joined Nigel Sloam & Co in 2007 and qualified as a Fellow of the Institute of Actuaries in 2011.

Autumn Statement 2012

Wed, 05 Dec 2012 00:00:00 +0000

In his 2012 Autumn Statement today the Chancellor of the Exchequer announced changes to the pensions tax regime – again! The majority of these changes will take effect from 6 April 2014. The position will be clarified further when enabling draft legislation is published next week.

It is clear, however, that there will be a concentrated opportunity for pensions and contributions planning and efficiency over the next 16 months. We will liaise with you and your other professional advisors with a view to ensuring that you obtain the maximum possible advantage.

A: CHANGES

We summarise the key changes below:

A change to the Standard Lifetime Allowance (SLA)
Fixed Protection 2014
Personalised Protection
A fall in the Annual Allowance (maximum pension contribution rate)
A rise in the Capped Drawdown Limits on pensions in payment

To see the full article please click here.

Proposed Changes to the UK Tax Regime for QROPS - update

Thu, 01 Mar 2012 00:00:00 +0000

There has been considerable confusion and unfortunately - in some cases - misinformation circulated by those with vested interests regarding the proposed changes to the regime for Qualifying Recognised Overseas Pension Schemes (QROPS), announced by HMRC on 6 December 2012. There have been varied reactions regarding the prospects for schemes that may lose QROPS status as well as different or slow responses from the various QROPS territories to these proposed changes.

The HMRC requested consultation period ended on 31 January 2012. It is expected that the final Government response will be published simultaneously with the Chancellor’s Budget statement on Wednesday 21 March 2012.

The fact that the original consultation document included draft secondary legislation combined with the short consultation period would suggest that there is momentum to see these changes implemented, close to those suggested announced in the draft proposals.

The main proposed changes are:-

The introduction of a new condition for QROPS qualification – that any exemption regarding the taxation of benefits for non-residents must also be available to residents in the territory in which the QROPS is based. This affects existing arrangements in Guernsey, The Isle of Man, Gibraltar and – depending upon the structure adopted - in Malta as well.
Revised reporting requirements for all QROPS. It is proposed that the reporting period will be changed from the first five full fiscal years after the member becomes non-resident to 10 years from the date of transfer to the QROPS. This will affect all existing QROPS wherever they are based.
Measures to prevent transfers to schemes which permit 100% commutation which HMRC views as against the spirit of the QROPS regime. This affects arrangements in New Zealand in particular.

To see the full article please click here.

Investment Summary February 2012

Wed, 01 Feb 2012 00:00:00 +0000

A good month for our portfolios! Our portfolios continue to perform well despite the downturn in the market.

The returns on our UK Equity, Overseas Equity and Bond Portfolios over the last month were 3.1%, 6% and 1.7% respectively.

To see details of the past performance of our Investment Portfolios please click here.

Please note that past performance is not necessarily a guide to the future. The value of units in the funds may go down as well as up.

Should you wish to discuss our portfolios in more detail and/or other investment opportunities and whether these may be appropriate for you please contact Salvatore Avanzato, Guy Young or Patrick Day.

HMRC Announces changes to QROPS

Fri, 16 Dec 2011 00:00:00 +0000

Last week HMRC issued, without any prior warning, a consultation document which set out proposed changes to the tax regime governing QROPS.

Attached to the consultation document was draft secondary legislation proposing changes to the qualifying conditions for QROPS, together with increased reporting conditions for such schemes. HMRC intends that, subject to any matters that arise in the consultation process, the new regime will start on 6 April 2012 – and will affect all current QROPS.

Against this background, we would highlight the following fundamental changes that HMRC proposes for continuing QROPS.

From 6 April 2012 any tax exemption that is available in respect of benefits paid to a non-resident of the territory in which a QROPS is located, must also be available to residents of the QROPS territory
QROPS managers will be obliged to make reports to HMRC for a total of 10 years from the date of transfer to a QROPS – as opposed to the current 5 years from the date of first becoming non-resident outside the UK
More detailed reporting is required from QROPS administrators
At least 70% of the funds transferred to a QROPS must be used to provide income in retirement

Pension Schemes wishing to qualify as QROPS or maintain their existing status will need to meet the above additional new conditions

To view the full article please click here.

ITPA Conference October 2011

Mon, 17 Oct 2011 00:00:00 +0100

We have all got a problem! Everybody needs income, particularly when there is more time to spend it - and there is more time now! People have increasing expectations and as result of advances in technology and medicine, one of the expectations that has grown is the expectation of life.

In parallel, increased technology has caused redundancy. Occupations have changed, and people find themselves “old and cold” by their mid-fifties. By contrast, at the other end of the scale, there are plenty of young adults across the world who have very little prospect of employment at the current time. We have a further problem, therefore, as to how to provide for the period of middle to late life, given that so many people may be out of work from time to time and retirement may be imposed and not planned for.

I think that you ought to realise that, although life expectancy across Europe has gone up by 10%, in fact, the time spent in retirement has more than doubled. It used to be the case in England and Wales that a man of 65 left employment, “came up from the pit”, lived for seven years and then dropped dead! Now such a man has every prospect of living well into his eighties, and therefore we have got a considerable longer period of non income generation to be saved for. The flipside of longevity is extra cost!

To see the full article please click here.

NSS Actuarial opens in Monaco

Mon, 12 Sep 2011 00:00:00 +0100

UK-based actuarial firm Nigel Sloam & Co has opened a new company in Monaco - NSS Actuarial Monaco. The new office will focus on expanding the range of services on offer to non-UK resident clients.

The new office, located in Monte-Carlo, will complement the services provided by Nigel Sloam & Co in London providing actuarial advice including QROPS and QNUPS solutions, where appropriate - for the growing number of British expatriates now resident in Monaco, other countries around the Mediterranean and Switzerland.

Nigel Sloam & Co, which has been providing pension advice and Trustee services to companies and high-net worth individuals for more than 30 years, has clients in more than 40 countries around the world. The new office will be lead by Senior Partner Nigel Sloam.

“We have developed a unique specialisation in advising former UK residents on the structuring of their pension arrangements and the opening of an office outside of the UK is a natural progression of this. We are particularly excited by the prospect of integrating further with the growing British community in Monaco, who have been historically under-served compared with communities in other offshore jurisdictions such as Guernsey and Gibraltar,” said Nigel Sloam.

The Monaco relationship is not new. Nigel Sloam has developed strong connections with Monaco over 30 years and his family has associations with the Principality stretching back for more than 60 years.

New Monaco website

Sun, 21 Aug 2011 00:00:00 +0100

Our Monaco website was launched on 21 August 2011 for NSS Actuarial Monaco Sarl.

NSS Actuarial Monaco Sarl is an independent firm of actuarial consultants based in Monaco - the first actuarial consultancy in the Principality.

For further details please click on the link below.

www.nssactuarialmonaco.com

Investment Newsletter December 2010

Wed, 22 Dec 2010 00:00:00 +0000

In autumn 2009, following a period of high volatility in all major investment sectors - particularly in equities - we constructed three model portfolios designed to provide exposure to appropriate markets - but with lower volatility than the relevant sector averages.

The three portfolios that we chose initially were:

a) UK Equities,

b) Overseas (i.e. non UK) Equities and

c) Bonds.

For further details please click here.

Latest Pension Changes December 2010

Fri, 17 Dec 2010 00:00:00 +0000

We summarise below key features of the Government’s proposed changes to the UK pensions tax regime, as set out in draft clauses of Finance Bill 2011, published on December 9th 2010 – and which will affect you!

We have identified the areas which will be affected by the proposed changes as set out below.

Maximum tax relieved pension contributions from 6th April 2011
Maximum Benefits after 6th April 2011 including:

a) The Standard Lifetime Allowance after 6th April 2012

b) Pensions after 6th April 2011

c) Death Benefits after 6th April 2011

Click here to download the full article.

Israel Seminar - November 2010

Fri, 12 Nov 2010 00:00:00 +0000

Nigel Sloam and Guy Young of Nigel Sloam & Co Actuaries and Consultants, together with Mark Freed of Intertax Consulting Limited Chartered Accountants and Tax Advisors spoke at Seminars, organised in conjunction with a major Israeli Bank, on:

“Maximising the efficiency of UK pension arrangements for current and prospective Israeli residents.”

The Seminars were held in Tel Aviv and Herzliya Pituach on Tuesday 23rd November 2010 and Wednesday 24th November 2010.

We are intending to hold further seminars in London in the New Year. If you are interested in attending please contact Anne Boyle to register your interest.

Proposed Tax Changes for Pensions - October 2010

Fri, 15 Oct 2010 00:00:00 +0100

The Government has now announced its proposals for amending the tax reliefs available on contributions to registered pension schemes. It has also indicated that it will reduce the maximum amount of pension funding that can be accumulated without incurring a tax charge at the time that benefits come into payment.

Key features of the changes are that:-

The maximum tax relieved pension contributions will be £50,000.
There will be a new carry forward regime from 2011/12 for contributions.
The limit on tax relieved pension savings, measured when benefits are payable, will drop from £1.8 million to £1.5 million.
Existing enhanced or primary protections will continue.
Certain types of non-registered pension arrangements including some EFRBS will lose their tax advantages.

Click here to download full article

Pensions Aspects of Emergency Budget 2010

Fri, 25 Jun 2010 00:00:00 +0100

Three general areas mentioned in the Emergency Budget are likely to affect pension planning for our clients over the coming years.

a) Contribution Limits

The new Coalition Government proposes to change the maximum limits on tax relieved pension contributions, introduced by the Labour Government.

The Chancellor’s provisional analysis indicates that the maximum annual tax relieved contribution (the Annual Allowance) will fall between £30,000 and £45,000 per person, with effect from 6th April 2011.

b) Extension of Middle Age to age 77!

At present members of our SSASs and SIPPs do not have to buy an annuity at any time. The Government has confirmed that it will end the effective requirement in other schemes to buy an annuity with effect from 2011/12.

In addition, if a member who was under age 75 on 22nd June 2010 dies before attaining age 77 any residual funds may be paid out in lump sum form at a tax rate of 35%. Previously, no lump sum benefits could be paid after age 75 and the tax on residual funds could have been as high as 82%.

Lump sum benefits will not be payable on death after age 77 and no changes have been made to the rates applying on death in these circumstances. Therefore, the tax on death after age 77 could still be as high as 82%.

c) Employer Funded Retirement Benefit Schemes

The Government is reviewing the tax and National Insurance treatment of Employer Funded Retirement Benefit Schemes (EFRBS) and similar schemes and changes may take effect from 6th April 2011.

Click here to download full article.

Budget 2010

Fri, 26 Mar 2010 00:00:00 +0000

A host of changes were made in the 2009 Budget and Pre-Budget review, limiting contributions in the run up to 2011 for those who have earned over £130,000 p.a. and after 2011 for those who will earn over £150,000 p.a.. All this Budget did was to confirm that these restrictions on contribution limits would not be removed.

This is extremely disappointing as people with higher incomes do have significant needs to make savings for pensions – as higher incomes do not always persist! Longevity requires advance provision! Together with the Association of Consulting Actuaries, Nigel Sloam & Co much regrets the Government’s stance, which we believe is very short sighted.

Click here to download full article

Minimum Drawing Age to Change from 50 to 55

Wed, 17 Feb 2010 00:00:00 +0000

With effect from 6 April 2010, the Government is changing the minimum age at which scheme members may commence drawing benefits from registered pension schemes. This will rise from age 50 to age 55 – except in cases of serious illness.

If you are under age 55 and have benefits (at least) within the above scheme, which you have not yet drawn (uncrystallised benefits), you should review whether or not you choose to start drawing on these before 6 April 2010.

If you do decide to defer benefits, then these will be inaccessible up until, at the earliest, your 55th birthday.

Click here to download the full article

Finance Bill 2009 - You Wouldn't Believe It - Oh Yes You Would!!!

Mon, 20 Jul 2009 00:00:00 +0100

On 3 July 2009 the Government proposed further amendments to its own Finance Bill which change again (and slightly improve) the tax reliefs on pension contributions - announced by Alistair Darling in the April 2009 Budget – and detailed in our previous circular –“ Another Budget Raid on Pensions”.

Since the Budget changes were originally unveiled, there has been consistent and national pressure from the entire financial planning, pension and insurance industry - which was non-politically motivated. These new amendments result directly from this pressure but offer only a slight improvement. They may, however, provide the opportunity to some clients who were making pension contributions at the end of the fiscal year – or at the end of their business financial year – to make some meaningful tax-relieved pension contributions to provide for their late middle age!

Click here to download PDF of full article

Budget 2009 - Another Budget Raid on Pensions

Fri, 24 Apr 2009 00:00:00 +0100

In it's 2009 Budget, the Government has once again chosen to meddle with the pension system and is once more hindering long-term retirement saving for higher earners to try to achieve a quick fix of the other problems that it has created.

The new proposals have substantial ramifications on pension planning for employers and individuals, comtemplating further pension savings. In addition, those who have commenced or who are eligible to commence pension drawing, may need to review their strategies as a result of announced tax increases.

Click here to download PDF of full article

Tax Changes to Personal Contributions

Sun, 06 Apr 2008 00:00:00 +0100

A number of changes have come into effect from 6 April 2008, as a result of a variety of tax changes, which will affect those members making personal pension contributions into Small Self-Administered Pension Schemes:

The maximum “Annual Allowance” for tax-relieved contributions to pension schemes has increased from £225,000 to £235,000 for 2008/9.
Basic rate tax is reduced from 22% to 20%. Therefore members should pay 80% net of their desired gross pension contribution into the Scheme and the Scheme Administrator will reclaim from HMRC the corresponding 20% of gross – rather than the corresponding 22% in 2007/8.

In consequence, members who are higher rate taxpayers will now need to reclaim the higher rate relief of 20% (rather than the previous 18%) through their self-assessment tax returns.

Click here to download PDF of full article

Pre Budget Report 2006 - To Draw or Not to Draw That is the Question!

Wed, 06 Dec 2006 00:00:00 +0000

Buried in the undergrowth of press releases etc. issued after Gordon Brown’s Pre-Budget Report on 6th December 2006, are announcements of further proposed changes to the new “simplified” pensions tax regime - plus new taxation for SSAS’s (small self-administered pension schemes) and SIPPS (self-invested personal pension). These could have a major impact on many of our clients’ wealth strategy and planning.

Click here to download PDF of full article

PRE BUDGET REPORT 2005 - GORDON BROWN'S U-TURN ON INVESTMENTS FOR SSAS'S AND SIPP'S

Mon, 05 Dec 2005 00:00:00 +0000

Gordon Brown in his Pre Budget Report on 5 December 2005 has withdrawn some of the tax advantages of the new investment freedoms that he had previously introduced for self-administered pension schemes.

The Chancellor’s U-turn affects both SSASs and SIPPs and reneges on his own legislation, whose provisions were due to come into effect on 6 April 2006 - “A-Day”.

Click here to download PDF of full article

Highlights of the New "Simplified" Pension Tax Regime

Fri, 09 Sep 2005 00:00:00 +0100

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”.

Click here to download PDF of full article