HM Revenue and Customs has created new draft regulations to extend protection for people with tax-free cash entitlements of more than 25% of their fund.
The new regulations are aimed at helping those who might lose their tax-free entitlements when making an assignment, rather than a transfer, to a new fund. The original regulations came into effect on 6 April and prevented occupational and Section 32 policies from holding more than 25% in tax-free cash. Those with schemes dating before 6 April were entitled to keep their tax-free cash of over 25% of the fund. However, the tax-free entitlement could be lost when assigning to an individual member. Previously, it was only possible to keep tax-free entitlements of over 25% if buying a defer...
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
