Wales

Wales (ⁱ/ˈweɪlz/; Welsh: Cymru [ˈkəm.rɨ]) is a country that is part of the United Kingdom and the island of Great Britain,bordered by England to its east, the Irish Sea to its north and west, and the Bristol Channel to its south. It had a population in 2011 of 3,063,456 and has a total area of 20,779 km² (8,023 sq mi). Wales has over 1,680 miles (2,700 km) of coastline and is largely mountainous, with its higher peaks in the north and central areas, including Snowdon (Yr Wyddfa), its highest summit. The country lies within the north temperate zone and has a changeable, maritime climate.

Welsh national identity emerged among the Celtic Britons after the Roman withdrawal from Britain in the 5th century, and Wales is regarded as one of the modern Celtic nations. Llywelyn ap Gruffudd's death in 1282 marked the completion of Edward I of England's conquest of Wales, though Owain Glyndŵr briefly restored independence to what was to become modern Wales, in the early 15th century. The whole of Wales was annexed by England and incorporated within the English legal system under the Laws in Wales Acts 1535–1542. Distinctive Welsh politics developed in the 19th century. Welsh Liberalism, exemplified in the early 20th century by Lloyd George, was displaced by the growth of socialism and the Labour Party. Welsh national feeling grew over the century; Plaid Cymru was formed in 1925 and the Welsh Language Society in 1962. Established under the Government of Wales Act 1998, the National Assembly for Wales holds responsibility for a range of devolved policy matters.

United Kingdom

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a sovereign state in the European Union. Lying off the north-western coast of the European mainland, it includes the island of "Great Britain" (a term also applied loosely to refer to the whole country), the north-eastern part of the island of Ireland and many smaller islands.Northern Ireland is the only part of the UK that shares a land border with another state—the Republic of Ireland. Apart from this land border, the UK is surrounded by the Atlantic Ocean, with the North Sea to its east, the English Channel to its south and the Celtic Sea to its south-southwest. The Irish Sea lies between Great Britain and Ireland. With an area of 93,800 square miles (243,000 km²), the UK is the 80th-largest sovereign state in the world and the 11th-largest in Europe. It is also is the 21st-most populous country, with an estimated 64.5 million inhabitants.

The United Kingdom is a constitutional monarchy with a parliamentary system of governance. Its capital city is London, an important global city and financial centre with an urban population of 10,310,000, the fourth-largest in Europe and second-largest in the European Union. The current monarch—since 6 February 1952—is Queen Elizabeth II. The UK consists of four countries: England, Scotland, Wales, and Northern Ireland. The latter three have devolved administrations, each with varying powers, based in their capitals, Edinburgh, Cardiff, and Belfast, respectively. The nearby Isle of Man, Bailiwick of Guernsey and Bailiwick of Jersey are not part of the United Kingdom, being Crown dependencies with the British Government responsible for defence and international representation.

Great Britain

Great Britain, also known as Britain ⁱ/ˈbrɪ.tən/, is an island in the North Atlantic off the north-west coast of continental Europe. With an area of 209,331 km² (80,823 sq mi), it is the largest island in Europe and the ninth-largest in the world. In 2011 the island had a population of about 61 million people, making it the third-most populous island in the world, after Java in Indonesia and Honshu in Japan. It accounts for the majority of the British Isles archipelago, along with over 1,000 smaller surrounding islands, including the island of Ireland to its west.

The island is part of the United Kingdom of Great Britain and Northern Ireland, constituting most of its territory: most of England, Scotland, and Wales are on the island, with their respective capital cities, London, Edinburgh, and Cardiff. Politically, the term Great Britain usually extends to include surrounding islands that form part of England, Scotland, and Wales.

A single Kingdom of Great Britain resulted from the Union of Scotland and England (which already comprised the present-day countries of England and Wales) in 1707. More than a hundred years before, in 1603, King James VI, King of Scots, had inherited the throne of England, but it was not until 1707 that the Parliaments of the two countries agreed to form a unified state. Subsequently, in 1801, Great Britain united with the neighbouring Kingdom of Ireland, forming the United Kingdom of Great Britain and Ireland. The state was renamed the "United Kingdom of Great Britain and Northern Ireland" after five-sixths of Ireland seceded from the United Kingdom in 1922.

Pension tax simplification

Pension tax simplification, often simply referred to as "pension simplification" and taking effect from A-day on 6 April 2006 was a policy announced in 2004 by the Labour government to rationalise the British tax system as applied to pension schemes. The aim was to reduce the complicated patchwork of legislation built-up by successive administrations which were seen as acting as a barrier to the public when considering retirement planning. The government wanted to encourage retirement provision by simplifying the previous eight tax regimes into one single regime for all individual and occupational pensions.

Main changes

Broadly the new regime allows considerable freedom in the tax relievable contributions that may be made to pension schemes, and the assets in which they may be invested. It also however caps the size of tax favoured pension fund that may be accumulated by an individual. This 'lifetime allowance' was set at £1.6M for 2007–08. Funds accumulated in excess of the lifetime allowance are subject to a tax charge of 55%. Transitional protection provisions were made for individuals who had already accumulated pension funds in excess of this amount.