SIPP suppliers unite in opposition to DWP pension levy plan

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SIPP and SSAS supplier skilled physique the Affiliation of Member-Directed Pension Schemes has expressed “robust opposition” to the DWP’s session on the overall pension levy for pension schemes.

The proposals from the DWP may improve the levy for schemes with lower than 10,000 members by a further £10,000 premium from 2026.

AMPS stated this is able to be unfair and disproportionate to the small schemes sector and would discourage using SSAS as a versatile and cost-effective pension car for enterprise homeowners and entrepreneurs.

Andrew Phipps, chair of AMPS, stated: “We’re deeply involved concerning the DWP’s proposals to extend the Common Levy for small schemes, which we imagine are unjustified and detrimental to the SSAS market. We urge the DWP to rethink its method and to interact with the trade to discover a extra cheap and sustainable resolution.”

AMPS has over 120 member corporations representing all components of the trade: SIPP suppliers, SSAS practitioners, pension legal professionals, software program builders, banks and funding homes.

At its AGM the supplier physique additionally added Kevin Whitmore of WBR Group to its committee of 9 representatives from throughout the trade.

In a latest column for Monetary Planning At this time sister title SIPPs Skilled, Lisa Webster, senior technical marketing consultant at AJ Bell referred to as on Monetary Planners, SIPP and SSAS professionals to voice their considerations on the DWP levy evaluate, saying that the rise could possibly be a demise knoll for SSAS schemes.

Nevertheless SSAS knowledgeable Martin Tilley has rebuffed the concept that the lately proposed improve to the DWP pensions levy might kill of the SSAS market

He stated that it, “appears incomprehensible {that a} one-off levy of this dimension needs to be imposed on schemes, by their dimension of membership and asset worth least capable of afford it.”




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