13 April 2010
Scottish Life has warned that retirees aged below the new
minimum pension age of 55 and in pension income drawdown could face
adverse tax charges if they now want to buy an annuity with their
fund or switch their fund to another pension income drawdown
provider.
Scottish Life said it had pressed HM Revenue & Customs
(HMRC) for clarification over the issue ahead of the 6th
April deadline but none had been received.
From the 6th April 2010, a registered pension scheme
and the member concerned will normally suffer adverse tax
consequences if retirement benefits are put into payment before age
55.
Scottish Life pensions technical manager Maureen Duckworth said
people who had retired under age 55 and opted for pension income
drawdown could be at risk if they want to buy an annuity or switch
their fund before hitting the new minimum pension age of 55.
"HMRC have already said if you were in drawdown and continue to
take income, even if you are under 55, you will be fine. What was
less clear was whether you could buy an annuity if you were under
age 55 or switch income drawdown provider. The legislation is not
clear."
