1 August - Pension payment deadline to avoid levy?

[yoganmahew]

From the Finance Bill (courtesy of G. Gurdgiev)
trueeconomics.blogspot.com/2009/ … cally.html

Section 22 provides for an increase in the current non-life insurance levy by 1 per cent to 3 per cent and for a new 1 per cent levy on life assurance policies. The increase in the non-life levy applies to premiums received on or after 1 June 2009 in respect of offers of insurance or notices of renewal of insurance issued by an insurer on or after 8 April 2009. The new levy on life assurance policies applies to premiums received on or after 1 August 2009 in respect of life assurance policies whenever entered into by an insurer.

As a self-employed, I pay my pension contributions in lump sum arrears, so 2008 is normally due in September 2009, 2009 in September 2010.

As I understand it, the new life premium will apply to pension policies?

So if I pay into both years before 1 August I save myself 1%?

[johnnyskeleton]

From the Finance Bill (courtesy of G. Gurdgiev)
trueeconomics.blogspot.com/2009/ … cally.html

Section 22 provides for an increase in the current non-life insurance levy by 1 per cent to 3 per cent and for a new 1 per cent levy on life assurance policies. The increase in the non-life levy applies to premiums received on or after 1 June 2009 in respect of offers of insurance or notices of renewal of insurance issued by an insurer on or after 8 April 2009. The new levy on life assurance policies applies to premiums received on or after 1 August 2009 in respect of life assurance policies whenever entered into by an insurer.

As a self-employed, I pay my pension contributions in lump sum arrears, so 2008 is normally due in September 2009, 2009 in September 2010.

As I understand it, the new life premium will apply to pension policies?

So if I pay into both years before 1 August I save myself 1%?

No doubt when they realise what you’ve done they’ll bring in some dubious retrospective rule like they did with the income levy to cover this. Is your pension considered a life assurance policy though? Perhaps you can put your pension into another form of investment and thus gain tax efficiency.

[yoganmahew]

I believe (from the chatter on AAM) that personal pensions and PRSAs are considered life policies, or rather, that the original form of the tax didn’t distinguish between any life policies.