Life offices offer way to beat 70% charge

Scottish Equitable has highlighted a growing number of enquiries asking about the possibility of taking tax-free cash for a pension and then transferring the remaining funds, without going into an unsecured pension (USP) to another provider or scheme which offers USP. It seems people have become confused over what actually happens to a pension when tax-free cash is taken, but according to HM Revenue and Customs (HMRC) a pension commencement lump sum (PCLS) can only be taken if a member is entitled to a “relevant pension” including USP. But if the member only takes the PCLS and not the “...