Higher tax warning for auto drawdown increases - Hornbuckle

In March the government increased the capped drawdown income limit from 100% to 120% of the GAD rate. Hornbuckle Mitchell senior technical consultant Lisa Webster [pictured] says: "Providers should not automatically seek to increase their client's income to 120% without direct instruction, as you run the risk of moving people up the income tax bracket. "As a pension provider, you do not know the client's individual circumstances so you must not assume that just because that person selected maximum income on their original benefit payment application form means they need or want all th...