Tom McPhail retweeted
Replying to @PensionsMonkey @TorstenBell
Every Budget the tax-free cash rumour pushes people into taking lump sums they don't need. I get panic calls every year. A clear 'no change' would stop a lot of rushed, irreversible decisions.
Tom McPhail retweeted
#OTD in 1805, the Royal Navy defeated the combined forces of France and Spain at Trafalgar.
The tactical brilliance, professionalism, technology and training which underpinned Adm Lord Nelson’s stunning victory have driven and shaped the Navy ever since.
#TrafalgarDay
Tom McPhail retweeted
| Breaking | Andy Burnham is set to authorise the implementation of single yellow lines and a loading only area outside the Library in Heckmondwike West Yorkshire.
Gravy...bar snacks...bus fares...VAR...parking charges...headphones...petrol station maps...all trivia...Meanwhile on everything that underpins people's quality of life, jobs, housing, public services, debt, defence, everything that actually matters is getting materially worse
'We are calling time on that'
Communities Secretary Angela Rayner, spoke to #BBCBreakfast about plans to give drivers the right to challenge "rip-off" private parking charges and more grace when using private providers
bbc.co.uk/news/articles/ck87…
Why housing wealth should be part of the advice conversation.
I absolutely agree with Dave Harris on this...
professionaladviser.com/4537… via @profadviser
Last week Torsten Bell lectured the pensions industry on the need to rebuild trust. So we asked him to put investors' minds at rest and rule out any cuts to pension tax free cash. His answer was to accuse us of scaremongering. Somehow, it's never Torsten's fault...
Yesterday the Chancellor ruled out any Budget increase to Capital Gains Tax. Why won’t @TorstenBell do the same for pension tax free cash?
telegraph.co.uk/money/pensio…
Yesterday the Chancellor ruled out any Budget increase to Capital Gains Tax. Why won’t @TorstenBell do the same for pension tax free cash?
telegraph.co.uk/money/pensio…
Tom McPhail retweeted
Replying to @PensionsMonkey
Pensions have always been seen as “difficult to understand” and the IHT change did not land, because it was in the future and farms were the hot topic - This is going to cause Government deep problems
Tom McPhail retweeted
Replying to @PensionsMonkey
Most folks will have multiple pensions all over the place. Even they probably aren’t sure where they are held. They won’t have combined them into one SIPP. What chance does an executor have of finding these pensions within 6 months?
Great, now do pensions tax free cash @TorstenBell
thetimes.com/uk/politics/art…
Tom McPhail retweeted
Replying to @PensionsMonkey
This is the point that lands for me - same with everything to do with pensions. We could save a lot of money by moving all government employees to DC pensions. Now there’s a tax saving to vote for and they’d be eating their own dog food.
Replying to @PensionsMonkey
I was at a private client lawyers IHT - Pensions Masterclass on Friday. These changes were universally ripped to bits, with advice to ensure CCL/TOB are amended to address the increased time spent and risks to professional administrators. IFA's feel no differently. It's a mess.
Tom McPhail retweeted
This is why if we had ALL of the Public Sector workers auto enrolled into a Collective Defined Contribution pension scheme, ala the Post Office, starting with MPs. That way they will see and experience what it is like for everyone one else and we might get better legislation
Spot on, I’ve met too many civil servants and policy makers with only a very vague idea about investment risk, or the uncertainties of lives that exist beyond a secure job with a DB pension and limited accountability
Replying to @SonnerSounds @PensionsMonkey
I do think they're unintended in a way, but only because the people dreaming up these policies have never been anywhere near their real life implementation. Torsten Bell might have written a few fruity policy papers but he's never been anywhere near financial services or insurance professionally. Most people in the civil service are lifers too. They implement policies thinking "oh this will be fine" and then everyone with an actual dog in the fight has to scramble to lobby to say "er, it won't actually..."
Tom McPhail retweeted
An excellent article by @PensionsMonkey in @thetimes on the huge problems with bringing Pensions into the scope of IHT!
👀thetimes.com/money/tax/artic…
The administrative problems:
✖️Executors must pay the tax but may not have access to the pension money, so they may need to find funds elsewhere.
✖️Late payment interest starts six months after the end of the month of death, at Bank Rate plus 4 points (7.75% now). On the average liable estate’s bill of £231,000, that is nearly £18,000 a year.
✖️Executors can ask schemes to hold back up to 50% of a pot to cover tax, which delays payouts. This hits children and unmarried partners hardest, since spouses and civil partners are exempt.
✖️The pensions dashboard, expected in 2027-28, won’t be open to executors, so they must trace pots manually.
✖️Illiquid assets such as property or private markets could take weeks to value and months or years to sell. HMRC has so far refused staged payments, unlike for other illiquid assets.
✖️A pension found late means reopening the tax settlement, and late payment charges could in theory consume the whole pot.
Tom McPhail retweeted
Replying to @PensionsMonkey
We were discussing this last week at our governance board meeting because we do quite a lot on member welfare. Where this is going to hit hard is the edge cases where there's financial difficulty that has been able to be smoothed out by expedited payments. The other question I had was if it's part of the estate is it now subject to probate? And how does this affect the general treatment of trusts for inheritance tax (because the idea is that it's not your cash, it's the trust's)? I remember speaking to one of our investment team in March about mandation and his view was that trust law would come into conflict with that - why doesn't it here? I'm doing my best to get to grips with what feels like a system designed to be explicitly Byzantine but God only knows how people who've never put much thought into pensions or estate planning will fare.
Tom McPhail retweeted
Replying to @PensionsMonkey
I’m getting my head around this +lining my ducks up. One massive asset strip with a running clock attached. What I’d give for a dark alley, no cctv + 5 mins with the rats that pushed this in to legislation. Being an executor will be a poisoned chalice.
Tom McPhail retweeted
Replying to @PensionsMonkey
Evil tax. You can see why so many are giving up on the UK.
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