QROPS updates
Alternatively Secured Pensions
Since the introduction of the Finance Act 2007, there are fewer options available for distributing the pension rights of someone over the age of 74 who dies with an Alternatively Secured Pension. Beneficiaries are generally limited to dependants, defined as:
- A spouse of civil partner
- A child younger than 23 when the scheme member dies
It is still possible to transfer ASP rights, on the death of a member, to a member or members of the same pension scheme.
However the result of UK Finance Act 2007 is that such a transfer is now treated as an ‘unauthorized payment’.
Such transfers are now subject to a combination of charges and taxes that can leave just 18% of the pension fund available as the net transfer.
Prior to the Finance Act 2007, such transfers could have potentially been made without any charge whatsoever.
For more information please email us.
QROPS Bureau