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 ...
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