24 March 2010
The government has announced an investigation into the trivial
commutation rules governing smaller pension pots.
An HM Revenue & Customs (HMRC) note released to coincide
with today's Budget said: "The government remains open to proposals
for further simplification, provided that the simplification won't
increase Exchequer costs; or add significant costs for HMRC and
would not be open to manipulation."
HMRC will be looking at a couple of proposals - the commutation
of personal pension pots up to £2000 and allowing couples to
pool pension pots to get better value on a joint life annuity.
