Tapered annual allowance confuses advisers

16 January 2017

Understanding the tapered annual allowance for pensions is one of the biggest regulatory-driven challenges facing financial advisers.

It is the number one reason for advisers calling the Prudential Adviser Helpline, which took more than 14,000 enquiries from financial advisers in 2016. In addition to tapered allowance, the other most common topics advisers raise on the Prudential Adviser Helpline include:

  • Trusts: amending parties, appointing trustees and gifts into trusts
  • Chargeable events: the impact on tax position and who is liable
  • Pensions: transfers, lifetime allowance, tax relief and death benefits options

The large number of enquiries that Prudential is receiving highlights just how advisers are struggling to keep abreast of regulatory change. Topics advisers commonly request help with include inheritance tax, taxation of various tax wrappers, and trust issues – from trust administration issues to helping advisers identify what trusts may be suitable for their clients. Pensions planning is also proving problematic with advisers seeking help with annual allowance, transfers, tax relief and death benefit options.

Les Cameron, head of technical at Prudential, said: "Many advisers have struggled to understand and advise on the implications of the tapered annual allowance and have been turning to our helpline for additional support  and help. That's not surprising because the rules are fiendishly complex and take into account all income including workplace benefits.

"In the world of financial planning, regulatory change is the only constant and that means more advisers need support to successfully navigate the rules. Our adviser helpline is just one element of a support package that offers one of the of highest levels of technical support to advisers, from any provider in our industry."


Notes to editors

The Prudential Adviser helpline can be contacted on 0345 7111 213 (Calls to this number are free from the UK).

Email: technical.helpline@prudential.co.uk

Media contacts

David Gwyer

020 7004 8079

davidgwyer@prudential.co.uk

Darragh Leeson

020 7004 8081

darraghuk.leeson@prudential.co.uk