Income in a spin

Recycling money into a pension is a concept that many advisers will be aware of, although it’s likely that advisers will be more in tune with the restrictions around this as opposed to the benefits that pension income recycling can have when done within the rules set out by HM Revenue & Customs (HMRC). HMRC’s anti-avoidance measures introduced in 2007 were aimed at restricting clients from recycling a lump of tax-free cash into their pension fund. Despite the restrictions on recycling tax-free cash greater than £18,000 in the 2010/11 tax year) the recycling of income taken from a pension...