As with other trusts, the trustees of a pension fund will have dual personality for VAT purposes. They may be registered individually in respect of their own business activities and then again as trustee in respect of business activities carried on by them on behalf of a pension fund.
A registered pension scheme is a pension scheme that is registered under Chapter 2 of Part 4 of the Finance Act 2004 because either: an application to be registered has been made and the scheme has been registered by HMRC. the scheme is treated as automatically registered.
An occupational pension scheme or personal pension scheme that is registered with HM Revenue & Customs under the Finance Act 2004. Approved schemes that already existed on 5 April 2006 were deemed to be registered pension schemes from the following day, when pensions tax simplification came into effect.
Certain pensions will allow you to choose without question who will receive your pension when you die. But if a pension allows you to make such a definite instruction, and the provider has no discretion, that pension must usually form part of your estate for inheritance tax purposes.
In general, your retirement plan benefits pass to the beneficiaries you designate on the plan beneficiary designation form. Your benefits will generally be subject to estate tax at your death and to income tax when benefits are distributed from the plan to your beneficiaries.
What about Inheritance Tax? Any assets left when you die, such as cash or savings, even if they were originally part of your pension pot, will be part of your estate for Inheritance Tax purposes. In most cases, any pensions you have can be passed outside of your estate and so won't be subject to Inheritance Tax.
Pension funds with legal personality: The pension fund with legal personality is an independent legal entity created to manage a pension fund and is the same legal entity as the fund itself. Examples of this type of pension fund construction are foundations or mutual associations.
Pension scheme returns, Accounting for Tax returns and event reports you must complete and send to HMRC if you're a scheme administrator.
If you're not employed, and so don't have access to a workplace pension, you can set up your own pension. These are called personal pensions and are a good way to save for retirement. You can also set one up outside of any workplace pensions you might have.
There are 2 main types of pension plans: defined benefit (DB) and defined contribution (DC).
Generally, there are two different types of pension that can be set up in the UK – defined benefit and defined contribution pensions.
In order for a pension scheme to register for VAT there needs to be a reason for it to do so. That reason will usually be for the purposes of holding VAT opted commercial property. As such, when a pension scheme initially registers for VAT it must supply details of why it is doing so to HM Revenue & Customs (HMRC).
Contract-based personal schemes
Contract-based pension schemes are individual contracts between the member and the pension provider. The pension provider is often an insurance company or an investment platform, although there are also a number of independent providers.
Who owns the assets in the defined-benefit pension plans of corpora- tions? Some may feel that this question is easy to answer: pension funds are legal entities separate from the corporation. This distinction was made more explicit with the enactment of the Employees Retirement Income Security Act of 1974 (ERISA).
A self-invested personal pension (SIPP) is the name given to the type of UK government-approved personal pension scheme, which allows individuals to make their own investment decisions from the full range of investments approved by HM Revenue and Customs (HMRC).
A Pension Scheme Tax Reference (PSTR) is the unique reference given to a scheme by HMRC when a scheme has been registered for tax relief and exemptions. It has 10 characters made up of 8 numbers followed by 2 letters. A scheme's PSTR is the one that evidences its status as a registered pension scheme.
You can get tax relief on private pension contributions worth up to 100% of your annual earnings. You get the tax relief automatically if your: employer takes workplace pension contributions out of your pay before deducting Income Tax.
Flexible pensions usually let you pass on your pension to your beneficiaries, tax-free if you die before you reach 75. After age 75, your beneficiaries may pay income tax on anything they take out of the pension.
The new pension rules have made it possible to leave your fund to any beneficiary, including a child, without paying a 55% 'death tax'. Many people want to leave their assets to their family when they pass, and a pension is now a tax-efficient way to do this.
The IRA is one of the most common retirement plans. An individual can set up an IRA at a financial institution, such as a bank or brokerage firm, to hold investments — stocks, mutual funds, bonds and cash — earmarked for retirement.