HMRC launches guidance on new pension flexibilities
On 27 March the government announced it would bring forward legislation in Finance Bill 2014 to ensure that people do not lose their right to a tax-free lump sum if they would rather use the new flexibility this year or next, instead of buying a lifetime annuity.
HMRC has provided more information to help people who want to use the new flexibility. This information is for people who have:
- received a tax-free lump sum on or before 27 March 2014
- either cancelled an annuity contract within the cooling-off period on or after Budget day (19 March 2014) that was linked to that lump sum or not yet decided how to access the rest of their pension savings
You can read the information here.
We also have Spotlights which cover the new rules on cashing in your pension, which you can read on our publications page here. There is a quick guide and one that goes into more detail.
Our mission is to make pensions accessible to everyone, so if there is anything you do not understand, please contact us and we will be pleased to help. To discuss any pension-related issue: