Up to 25% tax free cash from AVCs

Professional Adviser
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The ABI is in talks with the Inland Revenue to allow anyone earning under £30,000 a year holding an ...

The ABI is in talks with the Inland Revenue to allow anyone earning under £30,000 a year holding an AVC or FSAVC to take up to 25% of it as tax-free cash upon retirement, writes Kira Nickerson. As part of the ABI and Government's work on occupational pension scheme simplification, the ABI has established a working party to examine the issues surrounding the re-admission of tax-free cash under an AVC. One of the aims of this will be to even the playing field between stakeholder pensions and AVCs, according to Stewart Ritchie, head of pensions at Scottish Equitable. Holders of stakeho...

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