HM Revenue & Customs has advised some members to delay taking benefits or transferring pensions until it can fix incorrect legislation around the abolition of the lifetime allowance (LTA).
In a newsletter released last week (4 April), HMRC suggested there were a number of cases where "schemes should advise members to request a delay to the payment/defer their request to transfer". HMRC said these include any case which involves scheme specific tax-free cash protection; a transfer of a case with enhanced protection; enhanced protection and primary protection cases with protected lump sum rights of more than £375,000; the payment of a lump sum death benefit from funds which crystallised prior to 6 April 2024; any transfer from drawdown to a qualifying recognised overseas pe...
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