Pension - investments

Pensions schemes can invest in residential property (a tax charge as a benefit in kind will arise on any non-commercial use of assets by a member or associate.)

Loans to employers will have to be secured against assets.

The purchase of shares in an associated employer will be limited to 5% of the fund value.

Schemes will be limited to new, lower borrowing limits, equal to 50% of scheme assets.

In terms of action to be taken, savers will need advice to ensure they leverage these changes to their advantage. More pressing, however, is the need to review arrangements now and implement any urgent steps necessary to benefit from aspects of the current regime that are superior, or from the transitional arrangements that will protect against some of the new tax charges.