The need to release pension cash from your Newport pension pot can be driven by a variety of factors, perhaps to pay off your outstanding sum on your mortgage. The difference between the average house price sum in Newport is just under one third lower than the corresponding sum in Cardiff as can be seen in the table below.
The figures are an average based on the many wards of Newport, Malpas , Always, Marshfield, Beechwood, Pillgwenlly, Bettws, Ringland, Caerleon, Rogerstone, Gaer, Shaftesbury, Graig, St.Julians, Langstone, Stow Hill, Llanwern, Tredegar Park, Lliswerry, Victoria
Newport House prices
Location Average (£)
This Newport pension release is a recent feature as a result of the 2014 Budget statement
Details of Newport Pension Cash Drawdown Pensions 2014
Assuming these changes are agreed by Parliament in April 6, 2015 you will be able to do the following.
Providing your 55 and you have a personal Newport pension, sometimes called a money purchase pension or a defined contribution pension you will be able to take all of the money in your pension pot and turn your pensions into cash.
25% of this will be tax-free the balance of which would be added to your income for that year and will count as additional income and taxed accordingly.
The defined contribution pension scheme is one where your individual contribution and any employers contributions are invested to produce a pension pot on retirement. These include personal pensions, stakeholder pensions, group personal pensions and occupational money purchase pension schemes.
To expand on another major change, if you have an unfunded public sector defined benefit also called a final salary pension or a career average pension you will NOT be able to access it until retirement and you also not be able to transfer your benefits to a defined contribution scheme (DC), as you can do at the present time The schemes involved in these pensions are those in the public sector such as teachers, NHS, civil service, police firefighters and the Armed Forces this means you have to to simply accept the benefits as provided by these schemes.
The only exception to this is where ALL your Newport pension pots add up to less than £30,000 this does not include your state pension, then you may turn pensions into cash as previously indicated.
The government also intends to introduce something called a permissive statutory override this will allow schemes to ignore the previous scheme rules and follow the current, tax rules. This is in order to make payments flexible or to provide for the drawdown facility also known as pension release.
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