The perils of recycling

clock •

Maureen Duckworth goes through the issues surrounding recycling tax free cash

Nowadays, we're all encouraged to recycle, from tin cans and bottles to old televisions. It's a good thing to do. Good for the environment, good for our future; and you feel good when you do it too - you're doing your bit. However, recycling is likely to cause serious problems if it involves tax-free cash (now known as pension commencement lump sum). Tax-free cash recycling is where a pension scheme member takes a tax-free lump sum and directly or indirectly reinvests the money in a pension scheme. HM Revenue & Customs (HMRC) don't want tax-free cash used in this way. They are concerned t...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Income

The problem with decumulation isn't withdrawal rates - it's platform plumbing

The problem with decumulation isn't withdrawal rates - it's platform plumbing

'It's time to think differently about sequencing risk'

Hugh Cutler
clock 08 October 2026 • 4 min read
Annuity rates reach 18-year high of 7.75% in July

Annuity rates reach 18-year high of 7.75% in July

Up from 7.66% in April

Sophia Panayi
clock 30 July 2026 • 2 min read
Enhanced annuities: Turning health realities into better retirement outcomes

Enhanced annuities: Turning health realities into better retirement outcomes

'Retirement planning is not about choosing one solution over another but finding the right balance between them'

Mike Batty
clock 20 July 2026 • 3 min read