HMRC u-turns on income drawdown rules

clock

HMRC has backtracked on rules that could have left some investors trapped in poor personal pensions, in response to pressure from pension providers.

The draft of the Finance Bill published on 31 March said all savers switching pension funds to new providers after 6 April would become subject to new, stricter withdrawal limits when later going into capped drawdown. This would mean any transfer of uncrystalised benefits into a scheme in which chrystalised benefits were held would trigger the application of the new rules. Under the new rules, the maximum capped withdrawal from pensions is 100% of the GAD rate, rather than 120%, whilst the old five year longevity reviews have been replaced with triennial or yearly assessments. Pens...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Editor's message: When new beginnings come together

Editor's message: When new beginnings come together

Professional Adviser will be back on Tuesday

Jen Frost
clock 02 April 2026 • 1 min read
Women in Financial Advice Awards 2026: Nominations open!

Women in Financial Advice Awards 2026: Nominations open!

Awards to be held at Hilton Bankside in London

Professional Adviser
clock 24 March 2026 • 1 min read
PA Awards 2026: Photos from the night

PA Awards 2026: Photos from the night

Celebrating the advice profession's best

Professional Adviser
clock 20 March 2026 • 1 min read