Treasury to net £700m in pensions freedom tax windfall

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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...

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