Revenue officials are planning to close a tax loophole before it is even implemented which would have given high earners pension savers an extra £1,500 from their fund, reveals Abbey for Intermediaries.
According to the Glasgow-based firm, changes to the proposed pension simplification legislation set out in the Finance Bill published last month have now made it impossible for people with pension funds larger than 1% of the lifetime limit to use trivial commutation. Commutation of trivial pension funds will allow someone to take up to 1% of the lifetime limit as a lump sum rather than having to purchase an annuity. While the original proposal would have allowed anyone to commutate their trivial funds regardless of the overall size of the member's pension rights, the latest amendments...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
