SIPP and SSAS supplier skilled physique the Affiliation of Member-Directed Pension Schemes has expressed “sturdy opposition” to the DWP’s session on the final pension levy for pension schemes.
The proposals from the DWP might enhance the levy for schemes with lower than 10,000 members by a further £10,000 premium from 2026.
AMPS stated this could be unfair and disproportionate to the small schemes sector and would discourage the usage of SSAS as a versatile and cost-effective pension automobile for enterprise homeowners and entrepreneurs.
Andrew Phipps, chair of AMPS, stated: “We’re deeply involved in regards to the DWP’s proposals to extend the Normal 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 business to discover a extra cheap and sustainable answer.”
AMPS has over 120 member companies representing all elements of the business: 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 business.
In a latest column for Monetary Planning Right now 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 assessment, saying that the rise might be a dying knoll for SSAS schemes.
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 in a position to afford it.”
