Tax take on Budget reforms to net Treasury £4bn

The forecast was made in an impact assessment attached to the draft Taxation of Pensions Bill, published yesterday. The bill proposes members will be able to dip in and out of their defined contribution (DC) pots without having to purchase an annuity or drawdown. HM Revenue & Customs (HMRC) said it will allow members to take 25% tax-free cash as part of the "uncrystallised funds pension lump sum", with the remainder subject to income tax. HMRC said: "If you take an uncrystallised funds pension lump sum on or after 6 April 2015, you will be subject to the money purchase annual allow...