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Where Taxpayers and Advisers Meet

Pre 6 April 2006 HMRC Limits

Posts: 4
Joined: Sun Jan 03, 2016 8:17 pm

Pre 6 April 2006 HMRC Limits

Postby Bazzaman » Tue Jan 09, 2018 11:04 am

I am considering drawing from a small pension plan (value just over £22,000) under UFPLS. This will be my first drawing of any pension. I am after clarification on a couple of points on one of the forms that I've been sent.

Firstly, by way of background, the policy was sold as an Executive Pension Plan (the policy rules have been materially revised in the light of “A” day and the subsequent pension freedoms that have been enacted). This policy relates to my time with a small company (from April 1985 to late 2015 when the company informally wound-up and was dissolved in December 2015). Originally the company acted as Trustee, but the policy was assigned to me early in 2015.

The pension provider has sent me two forms, one of which is straightforward (Cash Lump Sum Payment Form).

The second form is entitled “Pre 6 April 2006 HMRC Limits”.

The second form asks for “Date of Leaving Service (if before 5 April 2006)”. I drew a salary from 1985/6 thru to 1998/9, but remained company secretary until the company's dissolution in 2015. So, for the purpose in question, did I leave service in April 1999 OR was I still in service (in my capacity as company secretary) until the company was dissolved in spite of not drawing a salary since 1999? Furthermore (especially if there may be flexibility with regard to the answer), which is “better” for me with regard to the purpose(s) of this form?

Also, does the following have any bearing: The second form also asks “Was the employee / member a “Controlling Director” at any time in the 10 years prior to the earlier of the date of leaving service and 5 April 2006?” I was a controlling director (i.e. I owned 20% or more of the voting capital) between January 1992 and May 1995. So if deemed to have left service in April 1999, the answer is yes, if deemed to have left service in 2015, the answer is no.

Thanks in advance for any input.

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