Article: Trivial pursuit.

COMMUTING TRIVIAL PENSIONS IS a great opportunity to benefit from pre A-Day planning. Pay in extra cash now, get basic rate tax relief added, then, come next April take it all as cash.

How it works

The trivial pension level is being raised to 1% of the LTA from next April, or AGBP15,000 -- ie, 1% of the lifetime allowance (LTA) of AGBP1.5m. As long as total pensions from all sources do not exceed AGBP15,000, the whole fund can be taken as cash rather than cash and annuity. This presents valuable planning opportunities for anyone who has only put aside a small sum for retirement or has made no provision at all.

In such circumstances an individual can pay in a lump ...

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