1. Funds can be accessed:
- At age 60
- At age 50 (if you retire)
- At any age (if you retire due to ill-health)
- On Death
2. In each case some or all of the Fund can be taken as a Tax Free Lump Sum. This amounts to:
- 1.5 times salary on retirement or
- 25% of the Fund if you choose your Proprietary Director options (see below).
- 4 times salary on death.
3. The balance of the Fund (if any) can be used in one or more of the following ways
- Full encashment, subject to tax at marginal rates (not available on death)
- Annuity purchase
- Transfer to an ARF (Approved Retirement Fund (see below).
Under your Proprietary Director options, a transfer to an ARF is not taxable. Profits and Gains of the ARF are not taxable. Withdrawals from the ARF will be subject to Income Tax. This is collected under the PAYE system.
An ARF inherited by children over 21 will be exempt from Inheritance Tax but is subject to PAYE at the standard rate. An ARF inherited by children under 21 is exempt from Income Tax but is potentially liable to Inheritance Tax. |
