Even without the radical changes proposed by the two discussion documents,
there are a number of recent changes to the pensions legislation which offer
useful levels of flexibility to the owner-managed business.
The most important of these is that, since 2001, the owner-managed company
has been eligible to form its own SIPP funds without requiring the intervention
of a bank, building society or insurance company. This new ability offers
freedom from the investment policies and inbuilt charging structure of the
major pension providers.
Instead, the company can operate its own scheme, subject only to the
government’s overriding restrictions on investment and administration.
For companies with (perhaps understandably) limited faith in the pensions
industry, this represents a valuable freedom.
This ability to operate an independent pension scheme will continue under
the post “A Day” regime, when the increased simplification will offer even
greater flexibility and savings to the company.
Cut My Tax can introduce clients to a firm of tax advisers experienced in
SIPP formation. Since this change in the law was introduced, a number of
clients have been helped to form their own independent pensions.
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