News article
Rowanmoor Pensions warns that HMRC is struggling to cope with complex pensions rules
1 July 2010
Rowanmoor Pensions believes that pensions simplification has failed, leaving HMRC struggling to cope with the constantly changing rules. In a recent AMPS (Association of Member-Directed Pension Schemes) survey, over 75% said pensions had not got simpler post A-day [see table below].
Speaking at the Henry Stewart SIPP conference on Tuesday 29 June 2010, Robert Graves, Head of Technical Services at Rowanmoor Pensions and Chairman of AMPS, outlined the importance of product providers, pension administrators and advisers ensuring they fully understand the impact of pension rules, but stated that the task of achieving technical clarity has become increasingly more difficult.
He put this down to a number of factors, chief of which is the stark fact that pensions simplification has failed:
"We have known that pensions simplification has failed for sometime but it is a point the new Government needs to appreciate and do something about.
"One of the contributory factors is that since the Finance Act 2004, which paved the way for simplification in 2006, every single Finance Act since has made changes to pensions law. This is coupled with the fact that problems are created by so much detail being contained within primary legislation.
"Having so much detail in primary legislation creates a barrier to the pensions industry and HMRC working together to make pragmatic adaptations to practice, in order to resolve ambiguity or detrimental unintended consequence."
Graves warned that HMRC's pensions division was struggling to cope, as it appeared that staffing and experience had been cut to a level assuming simplification had worked:
"We appreciate that costs have to be cut in the public sector but we urge the Government to ensure HMRC pensions division has adequate resource not only to deal with the continuing complexity of pensions but to implement the changes they want to make to reinvigorate pensions."
| Do you think pensions have become simpler to provide and administer post A-Day? | Response |
|---|---|
| On the whole – Yes | 9.76% |
| No real change – just different issues | 8.54% |
| On the whole – No | 75.61% |
| Don't know | 6.10% |
Source: AMPS Conference May 2010.
- Ends -
For further information, please contact:
Rowanmoor Pensions
Robert Graves
Head of Technical Services, Rowanmoor Pensions
08445 440 716
robert.graves@rowanmoor.co.uk
Anna Hopkinson
Marketing Manager, Rowanmoor Pensions
08445 440 667
anna.hopkinson@rowanmoor.co.uk
Polhill Communications
Jenette Greenwood / Paula Nugent
Polhill Communications
020 7655 0520
rowanmoor@polhill.com
Rowanmoor Pensions SIPP features
- personal, portfolio based, administration service;
- expert support from technical and sales consultancy teams;
- extensive flexibility and choice at retirement, including scheme pension;
- widest investment opportunities available in the SIPP market;
- integrated links to a proven IFA investment platform;
- streamlined process for settling adviser fees.
The Rowanmoor Pensions SIPP offers the following investment options:
Commercial Property (including overseas)
Land
Loans to unconnected third parties
Unquoted shares
Equities quoted on the London Stock Exchange
Equities quoted on recognised worldwide stock exchange
Gilts, Bonds and Fixed Interest Stocks
Investment Trusts
Unit Trust and Open Ended Investment Companies
Insured pension funds
Bank and Building Society deposits
Offshore managed funds
Futures and Options
Copyrights
Gold Bullion
Any of the above will be permitted provided:
- it does not give rise to an unauthorised payment charge;
- we can obtain satisfactory title to the asset;
- ownership of the asset will not give rise to an unacceptable liability or risk, for example a legal, practical or environmental risk.
About Rowanmoor Pensions
- Rowanmoor Pensions was awarded best SSAS provider in the 2006, 2007 and 2008 Pensions Management Technology Administration and Service Awards.
- Rowanmoor Pensions was awarded best SSAS provider in the 2008 Moneyfacts Investment, Life and Pensions Awards.
- The Rowanmoor Pensions website is www.rowanmoor.co.uk
- Rowanmoor Pensions provides business financial planning, actuarial and pension advisory services to IFAs, accountants and their clients.
- Rowanmoor Pensions currently employs over 200 people and administers around 4,200 schemes.
- Rowanmoor Pensions is a trading name of Rowanmoor Group plc (No. 5792242).
- Rowanmoor Personal Pensions Limited, a subsidiary of Rowanmoor Group plc is the scheme Administrator and scheme operator for schemes established under a Rowanmoor Pensions Family Pension Trust and the Rowanmoor Pensions SIPP and is authorised and regulated by the Financial Services Authority (Register number 458260).