Pension tax rules on adviser charging…explained

We now have final guidance from HMRC on adviser charges (ACs) and pensions. It confirms the tax position of ACs where paid in respect of pensions. It confirms that ACs paid from a pension are OK if they are for pension advice. ACs not for pension advice are unauthorised payments and suffer 55% tax. Advisers need to understand what constitutes pension advice, to prevent clients' incurring unnecessary tax. Pension advice would include advice on fund choice, provider and pension tax, as well as maximising retirement income or investment return on funds and advice regarding the type of pensi...