Pensions Law Lawyers

Sacker & Partners Solicitors

Executive Pensions

Pensions are a vital part of the remuneration package for all employees, but particular issues arise for more senior individuals.

High earners

One of our specialties is the design and implementation of pensions benefits for high earners including those who will be affected by the Lifetime Allowance (initially £1.5m) and/or the Annual Allowance (initially £215,000 per annum) which replaced the earnings cap from 6 April 2006.

At Sacker & Partners, we have the expertise to:

* set up unfunded unapproved retirement benefits schemes (UURBS) – secured or unsecured
* advise on the discontinuance of existing FURBS which have become less attractive after 6 April 2006.

Overseas issues

We have practical experience of how to establish these arrangements for employees of UK multinationals who are posted overseas.

We advise on:

* pension provision during postings to and from the UK;
* establishing pension arrangements for Third Country Nationals.

Disclosure

The disclosure of directors' pension benefits in the company's annual accounts can be sensitive and must be handled appropriately.

Termination

When an executive leaves office we are often asked to advise on the pensions aspects of any termination package, either by the company or by the executive.

Our team

The Executive Pensions Team has in-depth expertise and experience of dealing with pension benefits for senior individuals.

For further information, please contact Peter Lester or Paul Phillips on 020 7329 6699.

[ Add or Edit Your Law Firm ]

Trusts and Tax
Ambrose Appelbe Solicitors

Inheritance Tax and Pension Planning
New Pension Regulations affect SIPPS

As from April 2006 new regulations will govern SIPPs ? Self Invested Pension Schemes. Here is a quick guide to the main points:

No need to buy an annuity.

If you keep the SIPP till 75 years of age the minimum withdrawal is zero per annum but you can take 25% tax-free. The SIPP is made up of 1000 units. Of the entire fund thus in year 1 you can take 25% of each and every unit you can then continue to take 25% of the remaining units at the value later on i.e. benefit from increase in value.

If you die before 75 there is some tax namely 35%. If you survive after 75 there is no tax but the balance of the fund must go towards funding pensions for others e.g. children or grandchildren etc. i.e. you can then start them on their own Pensions. It is wise to have many grandchildren, because the maximum you can contribute to each is £215,000.

The SIPP is going to be rather like an ISA with a tax wrapper.

Tax is deducted at source on drawdown.

On death a spouse can step in and continue to take the Pension.

There is very wide individual freedom of investment up to the maximum allowed of £1.5m. This will go up in steps varying from £100,000 in a year to £50,000 in a year for the next 5 years and then be reviewed by the Revenue. If the fund goes above that there will be tax on the profit.

You can 'opt out' (but you are only allowed to opt out once) and then opt in again. This needs careful consideration each year.

Tax Relief is given at the marginal rate on contributions to the fund.

You need to consider carefully the weightings as you get older (e.g. you may want to get more of the weighting towards secured investments e.g. Gilts or Corporate Bonds). On Corporate Bonds and Gilts there is no tax payable by the fund on the interest.

The tax deducted on share dividends cannot be recovered.

SIPPs will provide an excellent tax free haven for investment and with scope for tax planning for the family.

This is only a broad indication of the scope available and should not be relied upon definitively. The detail is more complex and the circumstances of each individual (and of his or her family) must be considered carefully before any steps are taken.

The Capital Taxes Office frequently examines the circumstances surrounding SIPP's on death.

To speak to a lawyer about Pensions, Inheritance Tax, Trusts or related matters, telephone Felix Appelbe on 020 7242 7000

Index | Canary Wharf | Chelsea | Croydon | Ealing | Fulham | Earls Court | Euston | Greenwich | Hammersmith | Holland Park | Hyde Park | Islington | Kennington | Kensington Lancaster Gate | Marble Arch | Marylebone | Notting Hill | Olympia | Paddington | Regents Park | Richmond | Southwark | South Kensington | Swiss Cottage | St.Johns Wood | St.Pauls | Twickenham | Vauxhall | Waterloo | Wembley | West Ham | West Hampstead Wimbledon

If you are seeking a lawyer, or firm of solicitors in London, we aim to provide the most comprehensive list of legal professionals all at your fingertips.