Originally published in Bachmann Group Communiqué: Issue 3 August 2004
There has been enormous publicity over the changes in the pension legislation which are to be introduced from April 2006. One of the effects of this legislation is that corporation tax relief on company contributions to a FURBS - a Funded Unapproved Retirement Benefit Scheme - (usually for identified senior employees) will cease with effect from 1 April 2006. Additionally, the IHT shelter provided by FURBS established after that date will disappear. There is therefore a window of opportunity between now and April 2006 to ensure that companies maximise contributions to a flexible vehicle for their employees' benefit. The executive can influence the investment policies of the trustees and can even access the pension savings, pre-retirement, by seeking loans from the trustees.
