A summary of changes for the new tax year
Originally sent 06 April 2020
After the unprecedented events of the past weeks, a little normality is returning as the new tax year begins. There are a few pension changes for 2020/21 to remind you of, and some changes at Curtis Banks too.
Key pension changes
Changes to the tapered annual allowance
For those affected by the tapered annual allowance, the annual allowance gradually reduces from the standard £40,000 figure down to a minimum of £4,000. The tapered annual allowance applies to individuals whose threshold income is now above £200,000 and whose adjusted income is above £240,000.
Before 6 April 2020, the tapered annual allowance applied to individuals whose threshold income was above £110,000 and whose adjusted income was above £150,000. The minimum allowance was £10,000.
How does the taper work?
If your client is affected by the tapered annual allowance, they will lose £1 of annual allowance for every £2 of adjusted income above £240,000. Your client’s annual allowance will not drop below £4,000 though, so if their adjusted income is more than £312,000 there is no further reduction.
Finally, the lifetime allowance has increased to £1,073,100.
Key changes to illustrations
Our illustrations now feature a new front page which contains a summary of the key information. There are some subtle differences between older Curtis Banks pensions, and Your Future SIPP and former Suffolk Life pensions.
Drawdown and UFPLS illustrations for older Curtis Banks pensions
These are unchanged at present but will be changing over the next few days. Once introduced the calculations will show in real terms (i.e. inflation adjusted) rather than nominal terms. There are no changes to non-drawdown illustrations.
Drawdown illustrations for Your Future SIPP and former Suffolk Life pensions are already shown in real terms.
Statutory Money Purchase Illustrations (SMPI) for Your Future SIPP and former Suffolk Life pensions
These now have a new layout, making the content easier and more engaging to read. The information within the SMPI has remained broadly the same.
Online all of the time
The best way to reach us right now is via email or secure message from your portal account; our website’s Contact page will help you direct your message to the correct team.
Our online portal is completely responsive to any device to access on the go, with Secure Messaging for reliable, secure communications. Additional functionality delivers the ability to manage SIPP and investor details online, such as viewing and accessing investment summary, manage cash, bank transactions and drawdown summary.