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Pensions Kieran Cook Pensions Kieran Cook

Defined Benefit Pensions: How They Work and What to Consider Before Transferring

Defined Benefit (DB) pensions provide a guaranteed retirement income, often with inflation protection and benefits for surviving dependants. Transferring to a Defined Contribution (DC) pension can offer greater flexibility and control, but involves surrendering valuable guarantees. This article examines how DB pensions work, how transfer values are calculated, and the key financial planning considerations when deciding whether to retain or transfer benefits.

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Pensions Kieran Cook Pensions Kieran Cook

Pension Tapered Annual Allowance: Threshold And Adjusted Income Explained

For the 2026/27 tax year, the standard pension Annual Allowance is £60,000, although higher earners may face a reduction under the tapered Annual Allowance rules. The taper applies where threshold income exceeds £200,000 and adjusted income exceeds £260,000, reducing the allowance by £1 for every £2 of adjusted income above this level, down to a minimum of £10,000. Unused allowances from the previous three tax years may still be available through carry forward, subject to the usual conditions.

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Pensions Kieran Cook Pensions Kieran Cook

Pension Carry Forward: How Does It Actually Work?

Pension carry forward allows you to use unused annual allowance from the previous three tax years.

However, it does not allow you to carry forward unused earnings. Personal contributions that receive tax relief are still generally limited to your relevant UK earnings in the current tax year.

These are two separate limits, and understanding the difference is important when making a large pension contribution.

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UK Tax Kieran Cook UK Tax Kieran Cook

Trusts in Financial Planning: Control First, Tax Second

Trusts are not simply tax-planning tools. This guide explains how the main trust structures work, including bare, discretionary and interest in possession trusts, alongside the key inheritance tax, income tax and capital gains tax considerations. It also explores practical arrangements such as loan trusts, discounted gift trusts and life assurance trusts.

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