Important:

This petition was submitted during the 2010-2015 parliament

Petition review the GAD rules in SIPP draw down schemes to release more income

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Private Pension schemes based on deferred salary, commonly become SIPPs with a monthly income 'draw down ' amount subject to personal income tax. Many of these schemes were created in the seventies/eighties when returns on investment were relatively high; certainly much higher than these days. At age 70, GAD rules come into play, designed, no doubt , to protect the remaining fund at that time.
However, the rules can reduce the income by a huge amount, even to just over 40% gross, certainly affecting hard won lifestyle. The government loses a sizeable tax take and the individual loses spending power into the economy.
The situation urgently requires review, with some mitigation of the rules in mind.

This petition is closed This petition ran for 6 months

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