This document provides an overview of some strategies pension schemes can employ to reduce their VAT (value added tax) costs and potentially claim back VAT payments. It notes that voluntarily registering a pension scheme for VAT can allow the scheme to claim back VAT paid on investment management fees going back decades. The article also discusses the potential benefits of VAT registration for property investments owned directly by pension schemes. Finally, it mentions a legal challenge being brought by the NAPF and WCIF that could unlock significant VAT refunds for pension funds in coming years.

1. Pensions
perspectives
News and views for occupational pension schemes
Issue 3 April 2012
Welcome to the third in our Grant Thornton has a dedicated team of partners and
professional staff who focus solely on advising on issues
series of newsletters, which we around pension schemes. We provide integrated
hope offer some insight, assurance, advisory and actuarial services on all aspects
experience and opinion gained in of pension scheme design, risk management and
the course of our work with our financial assessment. We work closely with employers,
trustees, regulators, stakeholders and high net worth
Trustee and corporate clients and individuals to offer expertise and advice and deliver
in the industry in general. effective pension scheme funding solutions and pension
At a time when the pensions landscape risk evaluation and mitigation.
continues to change at an unprecedented In this edition, we provide further technical insights,
rate and when the recent Eurozone crisis including in relation to the verification of the Pension
has left many pension scheme trustees and Protection Fund guarantee, we ask if de-risking is
employers wondering what will happen affordable in the current economic climate and we
next, the right advice on how pensions include some news about our own pensions teams.
obligations and their risks can be managed
can make all the difference.
Contents
To certify or not to certify: trustee verification of the PPF guarantee 2-3
The effects of market volatility on the buy-out market 4
Auto-enrolment is on the way: are you match fit? 5
Getting money back from the VAT man 6
Key contacts in Pensions 7
Grant Thornton's services for pension schemes 8
Pensions Perspectives: news and views for DB pension schemes April 2012

2. Pensions Perspectives: news and views for DB pension schemes April 2012
To certify or not to certify:
trustee verification of the
PPF guarantee
In our November 2011 issue we meet its full commitment under the contingent asset'.
This negative statement is intended to be less onerous
commented on the Pension Protection by removing the burden of having to positively
Fund's (PPF's) Consultation Document confirm the financial position of the guarantor.
on the 2012/13 levy, a key feature of Implications and areas of uncertainty
which was the proposed changes to the So what exactly is required of trustees under this new
way in which the PPF will recognise certification framework? The Guidance states that
contingent assets. whilst it does not generally expect trustees to
There are three types of contingent asset that can undertake a covenant review of the guarantor as part
reduce the amount of risk-based levy payable by of the certification process, trustees should have
defined benefit pension schemes: guarantees given by taken 'reasonable and proportionate steps to reassure
group companies (Type A contingent assets), security themselves as to whether the guarantor has sufficient
over cash or real estate, and securities, letters of credit value as a business to underwrite the liabilities that it
and bank guarantees. has guaranteed'. But what exactly is reasonable and
proportionate?
Revised statement on certification of Type A How should trustees approach the new requirement
contingent assets
and how far do they need to go to assess a
A key feature of the new framework proposed by the
guarantor's ability to pay?
Consultation Document was that trustees would be
As the PPF acknowledges there will be some cases
required to certify that guarantors could be expected
which are clear cut where very little additional work
to meet their full commitment under the guarantee if
will need to be undertaken by trustees. However, in
necessary. This was intended to stop the practice of
our opinion, these black and white cases where the
guarantees being put in place with the main purpose
strength or lack of strength of the guarantor is clearly
of reducing the levy rather than actually serving to
evident, will not make up the majority. It is the grey
improve the position of the scheme.
area, where the strength, or the lack of strength of the
Whilst this move was in general welcomed, there
guarantor may not be so immediately obvious where
were reservations as to how the Consultation
trustees may need support and advice.
Document was advocating that this should take place
and the additional, but ill-defined and potentially Potential areas of concern
onerous, responsibilities that were being placed on Areas where trustees may need to seek advice include
trustees. appreciating the extent to which a group's structure
The final draft of the PPF's Guidance in Relation to impacts on the value of the guarantee.
Contingent Assets was issued in December 2011 and PPF guarantees have frequently been offered by
included a revised and, according to the Guidance, non-trading companies whose assets are principally
relaxed statement on the certification of Type A derived from the group (for example investments in
guarantees. In contrast to the positive statement subsidiaries and inter-company debt), in some cases
required by the Consultation Document, trustees are mainly from the employer to the scheme. In these
now required to make a negative pledge and certify cases the guarantee is likely to offer little additional
that 'they have no reason to believe that each support to that already available from the employer
guarantor, as at the date of the certificate, could not itself.
Trustee verification of the PPF levy Page 2

3. Pensions Perspectives: news and views for DB pension schemes April 2012
The extent to which a guarantor is able to realise its the return to the scheme on insolvency of the
key assets can also be a limiting factor. Unless a employer.
guarantor holds sufficient cash or liquid assets to
Timing issues
settle its commitments under the guarantee then
Trustees are required to consider the ability of the
extracting value at the time it is required may not be
guarantor to meet its commitments 'at the date of the
possible.
certificate', which will be renewed annually. This
If meeting the guaranteed amount requires that the
presents another challenge for trustees as publicly
guarantor accesses its banking facilities there may be
available financial information is frequently over a
further issues, such as the extent of lending covenants
year out of date and so does not reflect accurately the
in place and cash management restrictions in the
circumstances of the guarantor at the date
wider group, that impact its ability to source funds
certification is due to be made.
The Guidance also states that it 'does not expect
trustees to consider the likely impact of any future Key messages
insolvency of the scheme's employer(s) on the If in any doubt, take advice prior to certification. The
guarantor's ability to meet its full commitment'. This PPF has stated that it will be reviewing submissions,
seems counter-intuitive as the insolvency of an making its own investigations into guarantor strength
employer is precisely the circumstance under which a and rejecting any contingent assets which it finds to
PPF guarantee will be called. However it appears be deficient.
that the purpose of this inclusion is to ensure that Trustees should retain information supporting their
trustees are not overburdened with analysis or find it decision to certify a guarantee as this may be
necessary to seek specialist advice where an requested by the PPF when it carries out its own
insolvency is unlikely, which will be a majority of investigations into guarantor strength.
cases. Even though a contingent asset may not meet the
In other words the trustees should consider the new criteria it may still strengthen the covenant
circumstances which could arise on the insolvency of afforded a scheme.
the employer but they should not need to calculate
Contact For more information on any of the issues raised in this article, please contact Darren
Grant Thornton Mason on +44 (0)20 7728 2433 or Keith Hinds on +44 (0)20 7865 2716.
Verification of the PPF Levy by Trustees Page 3

4. Pensions Perspectives: news and views for DB pension schemes April 2012
The effects of market volatility
on the buy-out market
We posed the following questions to Q: What challenges will possible future increases in
demand hold from both the provider’s perspective
Kelvin Wilson, Head of Pension Risk and the pension scheme perspective?
Solutions at Grant Thornton. These were A: As more pension schemes look to de-risk,
his responses. providers will be faced with the challenge of
increasing capacity and finding new sources of
Q: Do you believe that recent economic events within
capital. They will also need to develop products that
the Eurozone have had a significant impact on the
longevity swap and buy-out market? are accessible for schemes of varying sizes that are at
A: Obviously, pension scheme liabilities have different stages on their de-risking journey plans.
escalated in the low interest rate environment, but Scheme sponsors and trustees will need to implement
the impact really depends on the individual pension a good governance framework to deliver any de-
schemes concerned. For pension schemes with fairly risking end game that they may have in a cost-
mature liabilities below £100 million or where the effective manner. Most de-risking solutions will have
asset and liability durations match, we have found an associated cash cost, so it is important to ensure
that deterioration in their funding positions has not that the cash cost of removing a specific risk is at
been so significant as to make de-risking options least lower than the cost of running that risk. There
such as pensioner buy-in or, in some cases, a buy-out will be the added complication of understanding how
completely unaffordable. In addition, sponsors a scheme's asset and liability profile will evolve over
generating a cash windfall are quite happy to engage time such that the trustee and the employer are able
in this arena right now. Other pension schemes may to put in place action based de-risking triggers.
need to prioritise recovering their funding position as Q: What is your view of the future outlook for
longevity hedging and swaps markets?
there are currently few funded solutions on the A: In order for longevity swaps to become a
market for pension schemes with large deficits. sustainable solution for the vast majority of pension
Q: What should pension schemes and providers be schemes, the market needs to evolve to become more
thinking about before entering before de-risking ?
accessible to pension schemes of all markets. This
A: It is important that scheme trustees and sponsors will involve longevity swaps evolving into a
understand what their objectives are, how they are standardised and transparent structure that prices
going to reach their objectives and the key aspects of pension schemes' longevity risk based on benchmark
any process on which they embark. A better longevity assumptions. The criterion of the Life and
understanding of the process and how the solutions Longevity Markets Association should help with this
work means an easier and smoother process to by encouraging the creation of indices that will assist
transaction. The important questions to keep in mind in attracting investment from the capital markets and
are what assets the scheme is invested in, have they increase liquidity.
undertaken a scheme data cleansing exercise and do
the scheme's stakeholders need to create a Q: What can and should the market do to evolve?
subcommittee to implement a sub-governance A: The market needs new structures that take
structure that will allow quick and decisive decisions account of deficits in schemes and provide a path
to be taken? Providers need to appreciate that over time to de-risk, not necessarily immediately.
different schemes have different funding levels and Providers need to devise a mechanism that allows
differing liability profiles. They need to structure their pension schemes to engage in de-risking, but which
solutions in a way that considers the funding position doesn’t necessarily involve locking into low yields.
of the scheme, the cash constraints of employers and Alternatively, if they do lock into low yields, then
focus on de-risking a pension scheme over time, not allow flexibility in the structure of the transaction. It’s
necessarily requiring immediate cash funding. all about innovation for me.
Contact For more information on any of our Pension Scheme De-risking services , please contact
Grant Thornton Kelvin Wilson on +44 (0)20 7865 2402
The effects of market volatility on the Buy-out market

5. Pensions Perspectives: news and views for DB pension schemes April 2012
Auto-enrolment is on the
way: is the scheme match fit?
Over the next three years employers will Retirement is a key phase in the life of a pension.
When staff approach retirement, employers should
have to enrol staff automatically into a help them to understand the difficult decisions they
pension scheme. Those outside the need to make. It will make all the difference and if
public sector are likely to consider using a they think kindly of the scheme, it will be reflected in
defined contribution pension scheme. the views of other members.
Employers have the choice of doing the minimum
This presents a number of challenges. and treating auto enrolment as a tax or embracing it
The nature of auto enrolment is that the employee and treating it as an additional benefit to staff. Active
does not have to make any choices at all. Do nothing engagement will only cost slightly more, but will give
and you are in. Evidence suggests that once in a much better value and make staff much more
scheme, the contribution levels - and even more so enthused. Simple steps such as helping staff to
the funds - are rarely changed. Many employees will review where their money is invested or what they
therefore not increase their contribution or move need to pay can make a great difference. Whilst
from the default fund. pensions can be complicated, these are the only two
Selecting a suitable default fund is key. Staff decisions members really need to make. Once they
generally covers a wide range of ages and salary bands are comfortable with what they need to do, the
and will have varying financial experience. One fund pension scheme takes a completely different
may not be suitable for all. It may therefore be perspective. If it forms part of their life plan, it will be
beneficial for employers to consider segmenting the a greater reason for them to stay. Therefore engage
workforce and having a different default for each. with staff and make communications simple and
More fundamentally, the scheme itself may need to practical. Review the default fund to make sure it
be reviewed. Tucked away in the small print, many remains fit for purpose and embrace the scheme.
providers reserve the right to change the terms i.e. The pensions regulator's six principles for defined
charges of the scheme, if its profile changes contribution schemes provide additional ways of
fundamentally. Typically, it is the lower paid who do helping to ensure a scheme is match fit for auto
not join (or are not invited to join) the pension enrolment. These relate to all schemes of all sizes.
scheme. Therefore auto enrolment is likely to reduce If employers embrace the pension scheme and auto
the average premium of many schemes, triggering a enrolment, staff are more likely to do the same.
possible hike in charges. There are ways of solving
this conundrum to the benefit of all if it is addressed
in good time.
Contact To discuss any Employer Solutions issues, please contact Ian Hartnell on +44 (0)20 7728
Grant Thornton 3018 or Chris Faulkner on +44 (0)20 7728 3142.
Auto-enrolment is on the way Page 5

6. Pensions Perspectives: news and views for DB pension schemes April 2012
Getting money back from the
VAT man
The subject of pension schemes has administration and management of the pension
scheme. This is because they cease to be an employer.
caused many a layman's eye to glaze over Unless the pension scheme is VAT-registered in its
and drift to more uplifting thoughts. It will own right the remaining 70% will be lost.
therefore be no surprise to most of you Voluntary VAT registration
that the combined subject of pension Investment management fees are likely to represent a
significant VAT cost for schemes that hold their own
schemes and VAT has failed to raise assets under management rather than in pooled funds.
heartbeats or stimulate significant interest However, there is scope to reduce VAT costs both
beyond the most hardened of pensions prospectively and retrospectively. The sale of non EU
trustees. securities gives a right of VAT registration for the
It would be overly optimistic to believe that this is pension scheme. In some instances, this could result
likely to change but if we forget the label 'VAT' and in a refund of VAT to the pension scheme on
just consider the cash that VAT represents, it is investment costs dating as far back as 1973! Normally,
relatively easy to demonstrate the increased returns a voluntary registration would allow for a four-year
from which a pension scheme could benefit, through claim in addition to the on-going benefit.
judicious management of indirect taxes. There are also Wheels Common Investment Fund
current legal challenges that potentially could unlock Finally, the European Court of Justice is currently
significant sums for pension funds in the coming years. considering a case taken jointly by the National
Property - VAT registration Association of Pension Funds (NAPF) and Wheels
Where the scheme invests in its own property, there Common Investment Fund (WCIF). The argument in
may be the opportunity to voluntarily 'opt to tax' the this case is that investment management services
property and apply for VAT registration. This would supplied to a defined benefit pension schemes should
apply to commercial property that is tenanted by be exempt from VAT. NAPF estimates that if
businesses that can normally recover their VAT. By successful this could save defined benefit pension
doing so the pension scheme can unlock irrecoverable schemes £100m per year. Many fund managers have
VAT relating to the property going forward (as well as submitted protective claims but pension schemes are
related administration costs). encouraged to contact their current and historic fund
managers to ensure their position has been protected.
Management fees and 30:70 split
A further twist to this case is that earlier this month
Fees charged for the administration and management
the High Court considered a comparable situation for
of a pension scheme (but not investment management)
investment trust companies and concluded that VAT
can be recovered by the employer (assuming the
that could not be recovered from fund managers could
employer is VAT registered and normally entitled to
be sought directly from HMRC by way of a claim for
recover all its VAT). If a fund manager has not split
restitution. This case is likely to run for some time and
its invoices between management and investment,
therefore it is important that pension funds take
HMRC accept an arbitrary 30/70 split. It is always
professional advice as to how best to protect their
worth reviewing the procedures relating to
position. The areas highlighted above show the
administration costs to minimize any VAT leakage.
benefits for pension scheme trustees in reviewing their
HMRC's view is that where the business ceases
VAT accounting procedures and the potential cash
trading (e.g. because of insolvency), the company is no
that could be unlocked.
longer able to recover VAT incurred on the
Contact For more information on issues around Pensions and Tax , please contact Dana Ward on
Grant Thornton +44 (0)20 7728 3316.
Getting money back from the VATman Page 6

7. Pensions Perspectives: news and views for pension schemes April 2012
Key contacts in Pensions
Here is a full list of contacts in Grant Thornton's Pensions teams so you can find us
when you need us.
Pension Scheme Advisory Pension Scheme Audit
Darren Mason Keith Hinds Judith Newton Neil Knights
Partner Partner Partner Director
T +44 (0)20 7728 2433 T +44 (0)20 7865 2716 T +44 (0)1908 359657 T 44 (0)20 7865 2873
M +44 (0)7971 434964 M +44 (0)7802 306831 M +44 (0)7778 621979 M +44 (0)07794 030990
E darren.m.mason@uk.gt.com E keith.hinds@uk.gt.com E judith.newton@uk.gt.com E neil.a.knights@uk.gt.com
Actuarial Services De-risking Asset Tracing
Paul Cook Robert Gibson Kelvin Wilson Nick Wood
Head of Actuarial & Risk Senior Manager Associate Director Partner
T +44 (0)20 7728 3070 T +44 (0)20 7728 2948 T +44 (0)20 7865 2402 T +44 (0)20 7728 2426
M +44 (0)7798 865205 M +44 (0)7970 352973 M +44 (0)7879 667 208 M +44 (0)7971 185154
E paul.cook@uk.gt.com E robert.j.gibson@uk.gt.com E kelvin.wilson@uk.gt.com E nick.s.wood@uk.gt.com
Employee Benefits Taxation Individual Advice
Ian Hartnell Chris Faulkner Dana Ward Neil Messenger
Director Senior Manager Partner Partner
T +44 (0)20 7728 3018 T +44 (0) 20 7728 3142 T +44 (0)7728 3316 T +44 (0)114 2629712
M +44 (0)7798 865205 M +44 (0)7906 610582 M +44 (0)7792 033334 M +44 (0)7966 446397
E ian.hartnell@uk.gt.com E chris.faulkner@uk.gt.com E dana.ward@uk.gt.com E neil.messenger@uk.gt.com
Key contacts for Pensions

8. Pensions Perspectives: news and views for DB pension schemes April 2012
Grant Thornton's services for
pension schemes
Grant Thornton provides integrated assurance, advisory and actuarial services to
organisations on all aspects of pension scheme design, risk management and financial
assessment. We work closely with boards of directors, trustees, regulators and
stakeholders to deliver effective pension scheme funding solutions and pension risk
evaluation and mitigation.
Pensions Advisory Services Pension Scheme Audit
Our specialist Pensions Advisory team advises A robust, efficient and high quality external audit is
trustees and sponsoring employers on issues crucial to supporting the trustees overall stewardship
surrounding employer covenant assessment, scheme and governance of occupational pension schemes.
specific funding and the pensions transaction Grant Thornton's Pensions Assurance team
clearance procedure. As part of our advice, we will specialises in providing a risk based approach to
deliver an accurate and individual analysis of a assurance over scheme financial statements
scheme's covenant, providing sufficient and specifically tailored to the needs of pension scheme
appropriate evidence to conclude on the financial trustees, delivered by an award winning, highly
strength of the sponsoring employer and its ability trained, specialist pensions assurance team.
to make good any deficit or future shortfall in We provide assurance in the following ways:
investment returns. • statutory audit
Changes in pensions legislation require trustees • transition between administrators, investment
of defined benefit pensions schemes to monitor managers and custodians
closely the covenant afforded to the scheme and to • independent valuation of complex investments
react to 'Type A' events. We have considerable • integrity of member data
experience, advising both trustees and employers in • benefit calculation reperformance
this area, and bring a unique insight into the • timeliness and accuracy of contributions
• testing of internal controls, including AAF 01/06
Pensions Regulator and Pension Protection Fund reporting
from our close working relationship and multiple • assisting employer internal audit
secondments into these organisations.
As corporate sponsors and trustees look to Our specialist Pensions Assurance team has
remove or reduce the risks involved in running their 23 partners and directors, more than 100 staff and
DB pension schemes, we offer considerable acts for over 600 clients, including some of the largest
expertise in the area of pension scheme de-risking. and more complex schemes in the UK. Our
We provide independent advice on structured assurance services are enhanced by innovative
solutions & transactions to either transfer out or software solutions which allow us to interrogate
mitigate risks including bulk purchase annuities, financial information more efficiently and effectively,
longevity swaps, liability driven investment irrespective of volume, responding directly to the
strategies & making benefit changes. tailored risks of a particular scheme.
Key contacts
Darren Mason Keith Hinds Key contacts
T +44 (0)20 7728 2433 T +44 (0) 20 7865 2716 Judith Newton Neil Knights
E darren.m.mason@uk.gt.com E keith.hinds@uk.gt.com T +44 (0)1908 359 657 T +44 (0)20 7865 2873
E judith.newton@uk.gt.com E neil.a.knights@uk.gt.com
Grant Thornton's services for Pensions Page 8

9. Pensions Perspectives: news and views for pension schemes April 2012
Scheme Financial Statements Preparation Scheme Governance and Risk Management
Accurate and clear financial information, which The regulator has issued considerable guidance in
trustees and their members can trust, is crucial to relation to scheme governance and trustee duties in
the stability and integrity of occupational pension relation to internal controls, and this is likely to be a
schemes. We were delighted to be recognised as UK continuing drive to improve overall governance
Pension Scheme Accountant of the Year 2011, and standards in the industry. We regularly assist trustees
our award winning team are able to bring their and scheme management in their assessment of the
expertise and experience of best practice to a wide risks specific to their scheme, including fraud risk,
range of schemes in assisting the trustees in the and the consideration of mitigating controls. We are
preparation of the annual financial statements, and able to facilitate trustee discussions and bring our
providing accounting advice on all areas including wide sector experience of best practice to those
the treatment of complex investments. discussions, assisting with the construction, and
We are thought leaders in the pensions sector regular update, of specific scheme risk registers and
and have regular dialogue with opinion formers in action plans to enhance scheme governance and
the industry. Grant Thornton, through Peter associated internal controls.
Rowley, writes the authoritative ‘A Guide to
Accounting for Pension Schemes’ which is
published by the Institute of Chartered Accountants
in England and Wales.
Key contact Key contacts
Neil Knights Neil Knights Les Dobie
T +44 (0)20 7865 2873 T +44 (0)20 7865 2873 T +44 (0)20 7865 2578
E neil.a.knights@uk.gt.com E neil.a.knights@uk.gt.com E les.dobie@uk.gt.com
Actuarial and Finance
Grant Thornton actuaries have considerable • Actuarial process reviews
experience advising employers on pensions, • Business modelling
particularly issues relating to Defined Benefit (DB) • Pensions actuarial consulting
pension schemes. • Derivative valuations
Our actuarial background gives us a deep Our services are targeted at helping our clients better
understanding of the funding and valuation of understand the value drivers in their business,
pension schemes. This can be critical when advising resulting in an information rich decision-making
on the impact of a benefit change or liability process.
management programme, or in a transaction
situation. Key contact:
Our expertise covers: Paul Cook
T +44 (0)20 7728 3070
• Valuing insurance liabilities E paul.cook@uk.gt.com
• Embedded and appraisal values
Grant Thornton's services for Pensions

10. Pensions Perspectives: news and views for pension schemes April 2012
Asset Tracing and Recovery in Pension Employer Benefits
Scheme Fraud Consulting
Grant Thornton is the UK's leading provider of Grant Thornton has a national employee benefits
specialist asset tracing and recovery services to the team which advise on all aspects of pensions and
victims of fraud, offering solutions and advice in the benefits.
following areas: We advise employers on the most effective
• fraud investigations that minimise the benefits structure for staff and partners and help to
consequences of fraud ensure that schemes are up to date and reflect
current trends and legislation. We also help to
• assistance with fraud reporting and presenting
maximise the value of the plans by increasing
findings in Court
employee understanding and appreciation and
• asset tracing of misappropriated assets and funds maximising the tax efficiency. The team are all
• recovery of the proceeds of fraud and other highly qualified and as well as advising employers
economic crime can also advise individual pension scheme
Our team comprises forensic, insolvency and tax members. Offering benefits such as pensions using
professionals, supported by computer forensics salary sacrifice is becoming increasingly common
specialists who provide expert advice and support at and our specialist employment taxes team can help
every stage of the discovery, investigation avoid the pitfalls of ineffectual schemes.
and recovery process. The employee benefits market place is ever
To support pensions fraud assignments, we draw evolving and the team aim to be ahead of the
upon the expertise of numerous leading pensions curve and have developed a number of innovative
specialists within Grant Thornton. Our track record solutions that can benefit staff whilst not incurring
stands us apart. We are currently dealing with over extra spend, and in some cases producing savings.
600 live fraud cases, with creditor claims for in excess The solutions are not just restricted to the UK and
of $25 million. there are many opportunities internationally in
areas such as pensions, life cover and healthcare. If
the benefits suite has not been reviewed for some
time, there are usually improvements and savings
to be gained.
Key contacts Key contact
Nick Wood Chris Boddy Ian Hartnell
T +44 (0)20 7728 2426 T +44 (0)20 7865 2387 Tel: +44 (0)20 7728 3018
E nick.s.wood@uk.gt.com E chris.s.boddy@uk.gt.com Email: ian.hartnell@uk.gt.com
Grant Thornton's services for Pensions

11. Pensions Perspectives: news and views for pension schemes April 2012
Individual Pensions Advice for
Taxation Entrepreneurs & Individuals
Our pension taxation team provides advice to Pensions can be a complex business for high-net
businesses and has a deep technical understanding worth individuals and business owner-operators.
of the subject, combined with high-quality client Along with the complexity and confusion of new
service. We provide a single point of contact and products and personal schemes, the poor
will give you an update on the status of any issue performance of pension schemes in recent years has
at any time. We take full responsibility to ensure made many individuals shy away from pensions. The
that the scheme meets all of its legal obligations. jargon and mystique surrounding pensions shrouds
We have a rigorous review process in place to the huge benefit of pensions: they are a very tax
ensure that all work is checked, all processes efficient investment wrapper, which can, in some
documented and service is the highest quality. cases, provide over 50% relief on contributions that
Specialising in the taxation of pensions and exceed £150,000 to £200,000. We understand all of
collective investment vehicles, we design and the potential benefits and can provide bespoke advice
launch products to ensure the most beneficial tax to help individuals to determine which particular
advantages. pension scheme would provide them the best benefit.
VAT: advising funds who want to invest in Our team can provide advice on getting the right
property in the most tax efficient manner and investment strategy for each individual’s risk appetite
ensuring that our clients are aware of any to ensure that the tax benefits of a pension can be
impending changes in legislation to ensure that maximised. Pension schemes can also be used in
they can take a pro-active approach to their VAT conjunction with an individual’s business, so a
accounting. commercial property purchase can be owned by a
Global Compliance Outsourcing Services: pension scheme or another investment vehicle to
given the increasing complexity of pension realise the full value prior to the sale of the company.
regulation, it may make more sense to outsource
to our experienced team rather than spending time
and resources building an in-house compliance
team
Key contact Key contact
Dana Ward Neil Messenger
T: +44 (0)20 7728 3316 T:+44 (0)7966 446397
E: dana.ward@uk.gt.com E: neil.messenger@uk.gt.com
© 2012 Grant Thornton UK LLP. All rights reserved.
‘Grant Thornton’ means Grant Thornton UK LLP, a limited liability partnership.
Grant Thornton UK LLP is a member firm within Grant Thornton International Ltd (‘Grant Thornton International’).
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