Voyant Adviser updated to model 2014 Budget pension changes
Voyant UK has updated Voyant Adviser to include the March 19th Budget amendments, allowing advisers to compare the current pension regime with the post-2015 proposals.
Following the Budget proposal that from April 2015 the tax restrictions on withdrawals from defined contribution pension schemes will be lifted, Voyant has modelled the elimination of the lump sum tax restriction as an optional setting in the updated Adviser Office solution, allowing advisers to review a client’s retirement planning under the ‘new (post 2015) rules’ compared to the current ‘old’ rules.
Bob Freeman, chief operating officer of Voyant UK, explains: “We knew it was vital to act quickly and enable advisers to demonstrate the potential ramifications of the changes to their clients with a powerful, visual scenario planning tool. The new version will quite probably be the most powerful way for an adviser to demonstrate the detailed impact of the proposed legislative changes by providing comparative scenarios with powerful collaborative imagery to help clients ‘see the future’.”
The current pension drawdown and annuity options will still be available as at present but users wishing to view the impact if the restrictions are lifted post April 2015, can now model this scenario for their client’s and show the impact if the entire fund is liquidated and taxed only on the excess above the tax free cash limit.
Voyant Adviser Key Budget Updates
- Drawdown pension maximum drawdown limit is increased to 150% of GAD for 2014/15.
- Flexible drawdown secured income requirement is lowered to £12,000 for 2014/15.
- ISA contribution limit is increased to £15,000 for 2014/15 and the Cash Isa contribution restriction lifted
- Personal allowance is increased to £10,500 for tax year 2015/16.
- Basic rate income tax threshold is lowered from £31,865 to £31,785 for 2015/16.
- Capital gains allowance is increased to £11,100 for 2015/16.