Funded unapproved retirement benefits scheme meaning

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...

Executive retirement benefit provision In much the same way as senior staff typically command higher pay than the wider workforce, they often also receive more generous pension support from their employers. Executive retirement benefits can be structured in several ways, such as: dedicated ‘executive’ tiers within group-wide occupational pension schemes offering richer terms than the main section executive-only registered occupational pension schemes trust-based, unregistered ‘top-up’ pension arrangements unfunded contractual pension promises Before A-day (6 April 2006), when the current registered pension scheme tax rules took effect, executive benefits exceeding the then applicable limits under the tax-approved pensions regime were commonly delivered through either: funded unapproved retirement benefit schemes (FURBS), or unfunded unapproved retirement benefit schemes (UURBS) Both FURBS and UURBS conferred certain tax advantages and were used effectively to top up executives’ existing occupational pension schemes. Since A-day, FURBS and UURBS are generally viewed as the funded and unfunded forms of Employer Financed...

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...