Her Majesty's Revenue and Customs (HMRC) have released revised draft legislation and guidance on the recycling of tax free cash.
In the Budget papers, HMRC say following comments received on the draft legislation published in early February, a revised version can now be found on the HMRC website. The updated version now states the anti-avoidance rule will not apply providing the amount of the pension commencement lump sum (PCLS), together with any other PCLS paid to the member in the last year, does not exceed 1% of the standard lifetime allowance, so, £15,000 in 2006-7 and rising each year in line with any increases in the standard lifetime allowance. Secondly the anti-avoidance rule will also not apply as long ...
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