Budget 2007: Alternatively Secured Pensions
22 March 2007
Legislation will be introduced in the Finance Bill which will affect the operation of members' and dependants' alternatively secured pension (ASP) funds. There will be a requirement to draw a minimum income from the ASP fund of 55% of the annual amount of a comparable annuity and the application of a tax charge where ASP funds remain on the death of the member and are transferred to the funds of other members in the scheme.
Schemes will also need to take reasonable steps to trace a member but if untraced at their 75th birthday the funds will become held in suspense and will not be part of the ASP funds.
For deaths on or after 6 April 2007 any IHT charged will be calculated after the nil-rate band has been firstly set against the estate of the deceased excluding ASP funds. In cases where there is an amount of nil-rate band available to set off against the ASP funds special IHT taxing rules will apply to cater for these special circumstances.
