Revenue to close pension commutation loophole, says Abbey

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...