AfI sounds warning on pensions tax-free lump sum

Citing the example of an employee’s pension rights split between different schemes, Afi suggests the Inland Revenue may start questioning just how the 25% tax-free lump sum – allowable under the new regime - is obtained. While rules may allow for the entire 25% lump sum to be drawn from, for example, one of three different scheme, AfI say the Revenue will be drawn to revisiting this set-up because of the implication that it may be missing out on some revenue. ”For non-regulated individuals the update states that whereas the Inland Revenue has been happy to allow for the maximum tax-fr...