'Hardline approach': TISA questions FCA/HMRC tax-free cash cancellation stance

No cancellation rights for tax-free pension cash

Jenna Brown
clock • 1 min read

Confirmation that cancellation rights for tax-free pension cash will not be allowed in any circumstances is an “unduly harsh” position and is not in keeping with achieving fair consumer outcomes, according to The Investing and Saving Alliance (TISA).

Last week, in coordinated statements, HM Revenue & Customs (HMRC) and the Financial Conduct Authority (FCA) clarified the interaction between tax legislation and regulatory rules on tax-free cash cancellation rights. Pension experts said the position "belied belief". TISA head of retirement Renny Biggins today (29 September) described the approach as "hardline". He said that while gaming the system needed to be tackled, the position of HMRC and the FCA was too stringent. "A pension pot can often be an individual's largest asset, and the decision to take tax-free cash is one of the ...

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

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

'While this policy alters the landscape, it arguably represents an adjustment rather than a fundamental reform'

Steve Charlton
clock 22 December 2025 • 3 min read
Utmost to sell life and pensions business to JAB Insurance

Utmost to sell life and pensions business to JAB Insurance

To focus on wealth solutions business

Jen Frost
clock 22 December 2025 • 2 min read
Editor's view: How disjointed is the government's salary sacrifice change?

Editor's view: How disjointed is the government's salary sacrifice change?

The editor's Friday Night Takeaway from 19 December

Jen Frost
clock 19 December 2025 • 3 min read