Budget Amendments to ASP and Scheme Pension

Amendments to Alternatively Secured Pension were confirmed at yesterday's budget. The principal change is that the income range post age 75 will be between 55%-90% of the basic pension derived from the Government Actuary's Department rate tables.

It was also confirmed that on second death, a combined tax charge totalling 82% would apply to residual funds. The Government also announced that a similar tax charge would apply to Scheme Pension, the method by which occupational schemes can avoid annuity purchase at age 75.

The fine detail of the tax treatment will be confirmed after a consultation period with the industry the deadline for submissions for which is 13th June.