'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

Pensions: The overlooked asset in divorce settlements?

Pensions: The overlooked asset in divorce settlements?

Practical steps to narrow the divorce pension gap

Alistair Myles
clock 11 February 2026 • 5 min read
Legacy pensions tech creates 'enormous risk, costs too much and underserves clients'

Legacy pensions tech creates 'enormous risk, costs too much and underserves clients'

'Our industry is famous for thinking in decades, but customers will not wait that long'

Jonathan Hawkins
clock 10 February 2026 • 4 min read
Govt moves to tackle gender pension gap with LPGS scheme changes

Govt moves to tackle gender pension gap with LPGS scheme changes

Reforms follow consultation on access and fairness in the Local Government Pension Scheme

Jonathan Stapleton
clock 03 February 2026 • 2 min read