New pension tax rules explained

Wednesday 4 February 09:56

Information about new tax rules for Jersey pension schemes: Changes came into effect at the beginning of the year and aim to simplify and modernise the tax rules applying to pension schemes and, in particular, allow greater flexibility for pension savers in the payments that they can make.

Flexibility in pension provision

Although pension providers are not obliged to change their schemes, the new tax rules do offer greater flexibility in some areas of pension provision which they can chose to apply. The changes include:

  • members of occupational pension schemes are no longer required to make an all-or-nothing decision between remaining in employment and retiring and drawing a pension from the scheme
  • pension schemes will be allowed much greater flexibility over how they pay the 30% tax free lump sum
  • individuals who can demonstrate that they have “minimum retirement income” will be allowed to access approved drawdown contracts, where they have complete control over when they take payments from their pension fund, even if they have already taken a tax free lump sum
  • transfers of funds will be allowed between pension schemes in a broader range of circumstances.

The Taxes Office have produced an explanatory leaflet which summarises the key rules. It will be available at the Taxes Office at Cyril Le Marquand House and made available to pension providers to pass on to their clients.

People with pension savings should contact their pension scheme manager to understand whether the changes will be applied to their particular scheme. The Taxes Office cannot give advice on pension planning.

Senator Alan Maclean, Minster for Treasury and Resources, said “These changes create a modern and flexible framework for such pension schemes in Jersey and give providers the opportunity to be much more flexible in the benefits that they will pay.”

“Pensions are notoriously complicated and we hope that the leaflet and information on the government website will give people an idea of how tax rules are applied to their pension savings. If they then have specific questions about their pension scheme they should contact their pension provider.”

The changes to the tax rules were agreed by the States Assembly during the Budget 2015 debate in September 2014.

Events

  • The Resolution Centre - Accredited Certificate in Mediation Skills The Resolution Centre and Queen Margaret University Edinburgh are pleased to provide an Accredited Mediation Skills course, unique to the Channel Islands.

    › read more
  • Launch of the 2017 JeCC Awards Come and find out more about the 2017 JeCC Awards

    › read more
  • 2nd Annual Real Estate & Real Estate Funds Conference Following the recent MIPIM real estate conference in Cannes, questions remain about the key global economic and geopolitical issues facing real estate investment professionals.

    › read more
  • Chamber Critical Briefing: GDPR IS YOUR BUSINESS READY FOR THE MOST PROFOUND CHANGE IN DATA HANDLING PROCESSES SINCE THE ADVENT OF COMPUTERS?

    › read more
  • CIISF CYBER SECURITY SEMINAR - THE REALITIES OF RANSOMWARE The CIISF's programme of seminars covering the practical aspects of cyber security continues on Monday 24th April 2017 at 12.30pm at the Town Hall

    › read more
  • AJA CPD SEMINAR: CREATING HEALTHY SPACES Event to be held at the following time, date and location:

    › read more
  • Hot Topics in Jersey Insolvency ARIES, the Association of Restructuring and Insolvency Experts, a Seminar on Wednesday 17 May at 4.00pm at the Pomme D’Or Hotel, Jersey followed by refreshments

    › read more
  • WDF Jersey - Creating a Level Playing Field - Diversity in Action Women's Development Forum Channel Islands Creating a Level Playing Field - Diversity in Action with Martina Williamson Head of HR for Citi Europe from 12:00 to 14:00

    › read more
  • IoD Jersey Director of the Year Awards 2017 The IoD Jersey Director of the Year Awards 2017 are Jersey’s most anticipated awards night is returning this year for its eighth time.

    › read more
  • Are you a Socially Dynamic Organisation: Prosperity 24.7 What does a Socially Dynamic Organisation look like and why is it vitally important today?

    › read more

Chamber Knowledgebase

Our frequently asked questions

Chamber News 

All the latest news from Chamber in one monthly PDF

Jersey Airport / Harbours

The latest arrivals and departures, select a link above

The Jersey Chamber of Commerce - Annual Charity of Choice

the benefits of membership

Networking opportunities, including our popular luncheons
Topical seminar programme
Support and guidance on doing business in Jersey


And become one of over 500 member businesses supporting Chamber in its aim of ensuring that local business is at the heart of a thriving and diverse local economy.

Call 01534 724536
› About Chamber


Copyright © Jersey Chamber 2012 - The Jersey Chamber of Commerce welcomes your comments and views. However, the posting of comments is subject to our terms which can be read here. Comments posted by users of this site are not the Chamber's comments nor do they represent the views of the Jersey Chamber of Commerce.

↑ Back to top