It’s important to note pension resets are suitable in some circumstances but not others. There is a balancing act between the options of resetting a pension or commencing a new pension. Please contact the team at Topdocs to discuss your particular requirements if you’re unsure.
For example, if a contribution was made during the year would you reset the pension or commence a new pension at the time of the contribution? With a new pension commencement you may be able to avoid the cost of an actuarial certificate and not need to complete accounts at that date. But you would end up with lots of pensions.
If a contribution was made during the year would you reset the pension at the end of the year? Here you would avoid a multitude of new pensions over time but would need to pay for an actuarial certificate and may have some tax to pay on earnings in accumulation mode.
There are rules including ensuring that the minimum pension payment has been made on the existing pension before commuting and resetting. Also does your deed allow for resetting the pension?