Finance Bill pension rule a 'step to simplification'

The simplification means pension savers will not have had to contribute to their pension scheme after A-Day to gain protection against tax if they qualify for a tax-free lump sum greater than the standard 25% of pension benefits. Previously, people with a greater entitlement could only receive an additional 25% tax-free lump sum of any money built up after A-Day if they paid at least £1 into the scheme after April 2006. Andrew Tully, senior pensions policy manager at Standard Life, says: “This change will allow up to one million people, especially those who left schemes before A-Day, to t...