On 6 April 2006 (known as A Day) new simplified rules came into effect around how pension and group life schemes are taxed, offering simpler and more flexible arrangements.
Group life schemes can now provide unlimited benefits, with lump sums over the Lifetime Allowance being taxed and pensions taxed as income. New schemes need to be set up by a trust deed and then registered online with HMRC before they receive the favourable tax treatment.
Further information on Pensions Simplification can be found on the HMRC website.
As the UK's leading Group Risk provider, we looked closely at how the changes impact our products.
Further information can be found in our Group Life Literature section.