Tax picture still cloudy for alternative secured pensions

tax

It seems it will no longer be possible to pass on ASP to relatives tax free, but exactly what the Revenue decides to do will be determined in the Finance Act 2006

One of the most eagerly awaited features of the new simplified pensions regime is the introduction of post-age 75 drawdown, called alternatively secured pensions (ASP). This opens the way for pensioners to pass on their pension funds to their relatives after death. ASP has some restrictions, in that the maximum income is 70% of the Government Actuary's Department (GAD) rate for a 75 year old, whatever the age of the individual. Nevertheless it seemed that this was the answer to the prayers of those who had repeatedly requested the abolition of the compulsory annuity purchase rule which exi...