TSW Commission recommendations on inheriting ARFs, age related contribution rates, and the Standard Fund Threshold

[Brendan Burgess]

8.3 The Commission recommends that Approved
Retirement Fund (ARF) assets should be treated for
inheritance tax purposes in the same way as other assets
where inherited by anyone other than the individual’s
spouse. Both Income Tax and Capital Acquisitions Tax
should apply. This supports the ‘Exempt, Exempt,
Taxed’ model and maintains equitable treatment within
the system.
8.4 The Commission recommends the removal of age related

contribution rates to be replaced with a single
annual contribution rate. The Commission also
recommends the removal of the annual earnings cap on
contributions subject to appropriate lifetime limits
remaining in place.
8.5 The Commission recommends the periodic
benchmarking of the Standard Fund Threshold to an
appropriate and fair level of estimated retirement
income.

 

[ClubMan]

Sorry, dumb and perhaps off topic question, but what is this "exempt, exempt, taxed" model that they refer to several times? Pension contributions are tax exempt, lump sum is tax free, ongoing pension income is assessable for tax? Or something else?

 

[NoRegretsCoyote]

exempt, exempt, taxed"

EET means:

Contributions: tax exempt
Capital gains: tax exempt
Drawdowns: taxed