The Registered Pension Schemes (Miscellaneous Amendments) Regulations 2011
From 6th April 2011, Schedule 16 to the Finance Act 2011 (“FA 2011”) amends Part 4 (pension schemes etc) of the Finance Act 2004 (“FA 2004”) to remove certain tax rules that require members of registered pension schemes to secure an income, usually by buying an annuity, by age 75. The amendments replace the concept of an “unsecured pension” and an “alternatively secured pension” with the concept of a “drawdown pension”. Schedule 17 to FA 2011 amends FA 2004 so as to reduce the annual allowance for pension savings from £255,000 to £50,000 with effect from 6th April 2011. Schedule 18 to FA 2011 also amends the standard lifetime allowance from £1.8M to £1.5M with effect from 6th April 2012. These Regulations make consequential amendments to a number of statutory instruments to reflect the changes made by FA 2011.