HMRC retreats over pension switch penalty

In a dramatic climb-down, the Government will fast-track regulations to lift the unauthorised payments tax charge on affected investors. HMRC will back-date the rule change to cover transfers made on or after 6 April 2010. The move follows outrage in the pensions industry after it was discovered an "unintentional consequence" of a change in legislation meant 50 to 55 year-olds would incur a 55% "unrecognised transfer charge" if they switched their pension to a different provider. It was flagged up as an issue after the normal minimum pension age increased from age 50 to 55 from 6 A...