Capped drawdown will continue post-6 April 2015.
It will continue in it’s current format for all those in capped drawdown on 5th April. You’ll have to be in it, to win it post-6 April.
Capped drawdown (BCE 1) will still be capped drawdown on 6 April, as long as you stay within GAD limits.
Why keep it it?
Why is that so useful?
Being capped, means it’s not flexible; it means (as far as HMRC are concerned) that you haven’t taken advantage of the new flexi-rules. You are still entitled to a FULL annual allowance of £40k. You can still keep capped drawdown, keep the £40k AA, keep and carry forward any unused allowances for money purchase contributions and keep contributing to capped drawdown.
You can help your clients plan when to use the new flexi-income rules (if you are in the financial planning business). That planning has a whole lot more options with capped drawdown accessible, post-6 April.
Here’s 2mins of a new video which has been added to the pensions flexibility module:
Video tutorial: Reasons to keep a cap
[vimeo id="116460397" mode="lazyload" autoplay="no"]Members can access and view the full video over here:
I’ll be adding a new video each week with ideas and explanations on how you can work with the new rules.
The membership lasts for 12 months and I’ll be constantly revising the materials in light of HMRC technical guidance.
Non-members can join here and access the full package:
[box title=”You can purchase the full module now” bg_color=”#66cd00″ align=”center” text_color=”#ffffff”]This structured and modular plan is designed to save you the time researching and focus on what matters in preparation for the new pensions flexibility rules in April 2015.
