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Avoiding legal and regulatory pitfalls in digital transformation projects
This article first appeared in the September 2024 issue of Financier Worldwide.
United Kingdom | Publication | May 2023
In its most recent pension schemes newsletter, HMRC has confirmed a change in the processes that can be used for dealing with DB lump sum death benefits and uncrystallised funds lump sum death benefits. This follows the abolition of the lifetime allowance tax charge in the Spring 2023 Budget.
On March 27, 2023, the LTA guidance newsletter stated that schemes would need to first contact the legal personal representative of the deceased member to find out how much available LTA the member had, telling them the type and amount of the benefit to be paid. This was to enable an assessment of whether the member's LTA had been used up.
However, following concerns raised at the first LTA working group meeting on April 4, 2023, HMRC has confirmed an about turn and will return to the system in place prior to April 6, 2023. Feedback to the working group had confirmed a strong preference for this reversal, although HMRC has stated that schemes can still elect to use the "new" method if they choose. Under the previous method, if the member's legal personal representative identified a chargeable amount after payment of a DB lump sum death benefit or uncrystallised funds lump sum death benefit, they reported this to HMRC. HMRC would then assess the tax due.
Further information from HMRC will come in LTA guidance newsletters until it develops a longer-term position for its full abolition from April 6, 2024.
Newsletter 149 also confirms that HMRC is in the process of updating the online annual allowance calculator.
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This article first appeared in the September 2024 issue of Financier Worldwide.
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The Digital Markets, Competition and Consumers Act (DMCC Act) received Royal Assent on 24 May 2024 and is generally expected to come into force in autumn this year.
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On 26 July 2024, the People’s Bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE) jointly released revised rules in respect of the investments into China’s financial market through the Qualified Foreign Institutional Investor and Renminbi Qualified Foreign Institutional Investor (collectively, QFII) regime (the New Rules).
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