Lucas Financial Consulting Ltd

•  Pension Levy
• Imposition of an annual 0.6% levy on nearly all pension benefit structures
•  Will be in place until 2014 and is based on the value of scheme assets at the 30th June
•  Look at ways of offsetting the cost of the levy – i.e. lower cost structures
• Can you access lower cost structures through reduced product charges?
• ARF Planning  Imputed distribution remains at 5% for funds < €2m
• New 6% rate for funds > €2m
• Not just ARFs that are taken into account in determining fund size – now applies to Vested PRSAs as well
• AMRF reduced back to €63,500

What positive action can you take?

• Help maintain ARF values by looking at lower cost structures
• Review your Asset choice to help maintain underlying capital value
• Ringfence €63,500 into an AMRF – not liable to imputed distribution Earnings Planning
• Move to company contributions where possible  but beware of salary sacrifice rules
• If you are self employed it might be worth looking at the following –

1.                                            Incorporation
2.                                            Parallel employment
3.                                            Service company structures
4.                                            Opportunities for employing a spouse.

Fund Threshold Planning

Standard Fund Threshold of €2.3m now applies to pension funds.

Avoid high-tax rollup by triggering BCEs where possible – Manage risk / reward strategy – to ensure the SFT is not breached

Fund a spouse’s pension – i.e. double the allowance

Contact Your Local Independent Financial Adviser

Lucas Financial Consulting Ltd are based near Carrickmacross Co Monaghan. As we straddle four counties – Louth, Monaghan, Cavan and Meath we are ideally placed to become your new Local Independent Financial Adviser