Treasury to net £700m in pensions freedom tax windfall

clock

The Treasury will net an extra £700m in tax this year as a result of the pensions freedom and choice reforms, Hargreaves Lansdown has projected.

Its analysis, for BBC News, said while the government estimated it would take in £320m in 2015-2016 from pensions freedom the figure would end up being about £700m over the year. Pensions freedom, introduced in April, gave defined contribution pension savers complete access to their pension pots from the age of 55, subject to normal taxation levels. People can take their whole pot as a lump sum if they choose, however, only a quarter of that will be tax free. Further reading: Osborne's pension revolution - everything you need to know The BBC report said as people have cashed in t...

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 Pensions

Govt ignores pension tax lock call as petition responses top 18,500

Govt ignores pension tax lock call as petition responses top 18,500

AJ Bell started petition; Govt forced to respond after 10,000 signatures

Jenna Brown
clock 23 October 2025 • 2 min read
How SIPPs and SSASs could help power the UK's energy goals

How SIPPs and SSASs could help power the UK's energy goals

'The role of pensions in supporting renewable energy deserves further consideration'

Caitlin Southall
clock 23 October 2025 • 4 min read
IHT on pensions: A moment in time for the profession to shine

IHT on pensions: A moment in time for the profession to shine

'Bringing pensions into the IHT net marks a structural change in how wealth is transferred'

Andrew Zanelli
clock 21 October 2025 • 4 min read