Changes to pension rules have provided members of older schemes with a "rare window of opportunity" to transfer to a new pension arrangement and retain any higher tax-free lump sum, a Sipps firm believes.

Rowanmoor Group, which provides SSAS and Sipps, said members of older schemes, such as executive pension plans have historically enjoyed the ability to benefit from enhanced tax-free lump sum payments over and above the current normal limit of 25% of the fund's value.
However, since 2006 those with a higher lump sum entitlement have only been able to retain this if benefits are taken from the scheme in which they were accrued, or transferred to a new scheme as part of a block transfer.

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Ian Hammond, managing director of Rowanmoor, made the point that members wanting to retain their higher tax-free entitlement will have the option to do so providing they transfer into a suitable new arrangement by 5 April 2015 and crystallise their benefits before 6 October 2015.
Member-directed schemes such as Sipps and SSASs can, with appropriate due diligence and careful consideration, offer an alternative for members who may be looking for more options, he said.
Mr Hammond said: "The Government has provided members of older schemes with a rare window of opportunity to transfer to a new pension arrangement and retain any higher tax-free lump sum they might have, accrued within their pension.
"Sipps, SSASs and family Sipps are member-directed schemes that can give members more autonomy on how they invest or take their benefits.
"We think that this transfer window will be of particular interest to individuals looking to invest in UK commercial property, and small business owners looking to access funds to invest in their business, which can be done through a SSAS's unique loan feature."

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