Earmarking meaning

See Q&A A client has been given money by his aunt as a gift. His brother has been given an identical sum. The brothers have decided to reserve the money for her care should it be needed, and they have prepared a Deed to record that understanding. Do the provisions of the Deed take precedence over their Wills (which leave their respective estates to their wives)?...

What is disguised remuneration? For many years, HMRC has worked to ensure that rewards arising from employment are correctly brought within income tax and National Insurance contributions (NICs), deducted by employers through the pay as you earn (PAYE) regime. To support this objective, the Finance Act 2011 introduced the disguised remuneration rules, designed to address the use of Employer Financed Retirement Benefit Schemes (EFRBS), Employee Benefits Trusts and other forms of ‘disguised remuneration’, so that receiving benefits is no more advantageous than taking a wage. The legislation places a PAYE duty on the employer and/or trustees of pension arrangements to collect income tax and the related National Insurance Contribution (NIC) charges. It also serves as a clear warning to employers and the promoters of tax avoidance schemes that contrived pay structures intended to avoid, defer or lessen income tax liabilities will face robust challenge. When the draft provisions were published in December 2010, they attracted significant criticism because of their broad scope and the risk that they...

This Practice Note outlines the nature of a pension attachment order made in family proceedings (formerly known as an earmarking order) and identifies which pension benefit rights are capable of attachment and which are not. It also covers the core features of a pension attachment order, the risks and ways to reduce them, variation matters and tax effects. Key features of pension attachment A pension attachment order directs the person responsible for a pension arrangement (the PRPA) to pay a percentage of the following to the person without pension benefit rights (the non-member party), rather than to the person with pension benefit rights under the arrangement (the member-party): pension income, and/or pension commencement lump sum, and/or lump sum payable in respect of the member-party’s death A pension arrangement means an occupational pension scheme, a personal pension scheme, a retirement annuity contract, and annuities bought under an occupational or personal pension scheme, or to meet liability in respect of a pension...

A-day 'A-day' is the widely used term for the broad pension tax 'simplification' reforms that began on 6 April 2006. The changes covered: how much pension contribution was allowed, the kinds of schemes an individual could invest in, the sums that could be taken (and when), and the choices available for any remaining fund. A-day also introduced the annual allowance and the (now abolished) lifetime allowance. See: Annual allowance and Lifetime allowance. AFPS AFPS: Armed forces pension scheme; see Practice Note: Public sector pensions and family proceedings. Accrual rate The speed at which pension benefits build as pensionable service is completed in a final salary scheme, eg 1/60 for each year of pensionable service. Accrued benefits The benefits earned in respect of service up to a specified date. Added years Extra pension provided by adding further years of pensionable service in a salary-related scheme. Such additional years are secured via transfer payments or through additional voluntary contributions/augmentation...