Tax Benefits of an ABP
Typically, any investment income or capital gains accumulated in a pension account, such as an Account-Based Pension (ABP), are not subject to tax. This means that the returns generated from the assets within the ABP are tax-free.
However, it’s important to understand that there are exceptions. Certain types of income, including taxable contributions and dividends from some private companies, remain taxable even when they are earned through a pension fund.
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
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