Pre Budget Report hits Scheme Pension

The PBR announced that legislation will be introduced in Finance Bill 2008 to ensure that tax relieved pension savings may not be passed down with tax charges within the scheme, following a members death, to enhance the benefits of other members.

This measure broadly catches the use of Scheme Pension primarily used by Small Self Administered Schemes and brings the tax treatment into line with that which applies to Alternatively Secured Pension available under Self Invested Personal Pension Schemes.