Loss of Tax Credits
Ten years ago the tax treatment of your pension fund was changed.
Prior to 1997, your pension fund was entitled to a tax credit on any tax paid on the income it generated from dividends. The budget of 1997 removed that tax credit.
Brewin Dolphin conducted public research (TNS) last February which showed that 41% (19 million) of British adults had been unaware of the impact of this move on their pensions for the last ten years. The findings also showed that although 19% of Britons were aware that the Chancellor had removed the tax credit, they had no idea of the impact on their pension fund. This means that 60% of British people have made no revisions in their pension arrangements in the ten years since ACT credits were abolished. Click on the pension tax calculator to see an estimate of how your pension has been affected.
The Pension Tax Calculator model makes a number of assumptions in order to calculate the impact of the tax changes on the value of your pension fund. The calculator does not (and cannot) represent the performance of your actual pension.
Please seek investment advice on this and all aspects of your retirement planning. In all cases, you should consult a financial adviser who is regulated by the Financial Services Authority to seek advice about your financial situation and how to plan for your retirement.
Please read this Important Note.