After much press comment and controversy Gordon Brown has finally had his way in limiting the size of pension funds. From April 6th 2006 pension funds large than £1.5 million will now suffer a tax penalty on the excess value. This maximum amount will increased as follows:

2006 - £1.5 Mill
2007 - £1.6 Mill
2008 - £1.7 Mill
2009 - £1.8 Mill

However! The amount of the pension fund on April 5th 2006 will be ring - fenced and potentially not subject to taxation on it or future growth.
The message is simple, you have a two year window to act …… funds marginally under £1.5 Million now should invest as much as possible to ensure that the maximum sum in excess of this £1.5 Mill ceiling is ring-fenced and safe from future taxation.

For a full appraisal of how this might affect you and guidance as to how best to arrange your pension affairs in light of these changes please contact in the first instance Stephen Charles on 0800 731 3080 or email .