Emergency Budget Update:

Two elements of the Emergency Budget that took place on 22 June 2010 were of particular importance within the pension arena:

1) With effect from April 2011, the Government plan to remove compulsory annuitisation from age 75. Their alternatives have yet to be spelt out in any detail but in the interim they have introduced a transition rule permitting the continuation of Unsecured Pension until age 77.

2) Consultation is to take place on high earner's tax relief on pension contributions with the likely outcome being a reduction in the Annual Allowance to a figure somewhere between                  £30-£50,000pa. Dentons invite IFAs and clients to submit ideas to us and we will pass them onto AMPS (Association of Member-Directed Pension Schemes). Please contact us on 01483 521521 or email: enquiries@dentonspensions.co.uk with your suggestions.

We will continue to post updates on these points as we learn them.