SIPP and SSAS supplier skilled physique the Affiliation of Member-Directed Pension Schemes has expressed “robust opposition” to the DWP’s session on the final pension levy for pension schemes.
The proposals from the DWP may improve the levy for schemes with lower than 10,000 members by a further £10,000 premium from 2026.
AMPS mentioned this is able to be unfair and disproportionate to the small schemes sector and would discourage using SSAS as a versatile and cost-effective pension automobile for enterprise homeowners and entrepreneurs.
Andrew Phipps, chair of AMPS, mentioned: “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 strategy and to interact with the trade to discover a extra affordable and sustainable resolution.”
AMPS has over 120 member corporations representing all components of the trade: SIPP suppliers, SSAS practitioners, pension attorneys, 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 trade.
In a current column for Monetary Planning At this time sister title SIPPs Skilled, Lisa Webster, senior technical guide at AJ Bell referred to as on Monetary Planners, SIPP and SSAS professionals to voice their issues on the DWP levy assessment, saying that the rise may very well be a dying knoll for SSAS schemes.
He mentioned that it, “appears incomprehensible {that a} one-off levy of this measurement ought to be imposed on schemes, by their measurement of membership and asset worth least capable of afford it.”
