Personal pensions
Article Abstract:
Pension planning in Great Britain changed with the Finance Act of 1987, which introduced the concept of the personal pension. Personal pensions (PPs) were established partly to help encourage employees to contract out of the government-run State Earnings Related Pension Scheme. PPs are available to the self-employed, employees not covered by plans other than the National Insurance Plan, or employees in company plans who seek alternative coverage. PPs are arrangements between individuals and private firms like insurance companies. The Finance Act defines contributions and benefits. Tax advantages are automatic. PP benefits include lump sum payments starting between ages 50 and 75, transferability to spouses or dependents, and a death benefit of a lump sum payment.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1988
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Personal financial planning
Article Abstract:
The ramifications of the UK Finance Act of 1989 affects personal financial planning in the areas of: pensions; personal equity plans (PEPs); medical insurance; and employee incentive schemes. In the area of occupational and personal pensions, the Act has set an earnings cap of 60,000 pounds sterling, applying only to new schemes, and, for personal pension plans, it sets a limit to contributions as a percentage of earnings indexed to age. The provisions of the Act encourages additional voluntary contributions by employees, employee share ownership, and employee incentives. The Act has also created tax relief for private medical insurance of those over age 60 and make PEPs commercially attractive.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1989
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Pay and PAYE
Article Abstract:
The 1989 UK Finance Act contains new employee taxation rules. The calculation of liabilities on the basis of earnings have been changed. Changes in the definition of receipt and its effect on transitional arrangements are redefined to be the actual payment of, placing on account of, or entitlement to remuneration. The earliest date that the sums are credited to the company's books will be the date of receipt. Changes will effect chiefly the remuneration of highly compensated executives and will harmonize the assessment of directors' and employees' earnings under the tax provisions of the PAYE system. In addition, tax deductions for employment costs will fall when the remuneration is paid.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1989
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