View more on these topics

Drawdown annuitants under 55 are saved from tax charge

The Treasury is to allow people in unsecured pensions who are below the new minimum retirement age to buy an annuity without incurring a tax charge.

When the minimum retirement age was increased from 50 to 55 in April 2010, there were fears that those who had moved into drawdown before the increase in retirement age would be unable to move to a new drawdown provider or buy an annuity without incurring a 55 per cent unauthorised payment charge.

In July, the Government all-owed people in drawdown to change provider without being hit with the charge but did not offer the same flexibility for people wanting to annuitise before 55. The Treasury has clarified that individuals can also annuitise without facing the charge.

Association of Member-dir-ected Pension Schemes chairman Robert Graves says: “We are very glad to see they have listened and are prepared to make the changes that will benefit the small number of people affected. Perhaps this is a sign that the new Government is willing to put the interests of customers first.”

Recommended

Sales of corporate bond funds turn negative, IMA stats

Net retail sales of £ corporate bond funds turned negative in November last year, according to the IMA. Having been the most popular peer group among investors in August, the sector saw outflows of £215m in November, according to the latest statistics. This made the sector the second least popular in November, just above Europe […]

Henderson set for more fund mergers

Henderson Global Investors is planning to merge away both its UK and European opportunities funds’ as part of its latest fund rationalisations. Subject to shareholder approval, the £87m UK opps fund will be merged into the £327m UK alpha fund, while the £209m European opps fund will merged into the £755m European growth fund. Henderson […]

1

Sants and sinners as flawed figures put case for RDR

In a letter to Treasury select committee chair Andrew Tyrie, FSA chief executive Hector Sants sets out why he believes the RDR should be implemented without dilution or delay. Central to Sants’ argument is the suggestion that consumers will continue to suffer £400m to £600m of misselling each year without the RDR. However, there are […]

Neptune’s Burnett looks beyond Greece

Watch Rob Burnett, manager of the Neptune European Opportunities Fund, discuss the Greek bailout deal and its potential implications for European equities. In the video Rob discusses: Why, with the Greek crisis receding, markets can now focus on Europe’s strong fundamentals The resilience of European markets and why the recovery is on a solid footing […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Great news but will they allow those under 55 in drawdown but taking nil income to start drawing income without tax charges applying?

  2. When I raised this query with HMRC after reading their recent newsletter 44 the answer was no they would not be able to draw income until reaching age 55 without incurring tax charges. This is regardless of the previous incorrect guidance they published in this respect!

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com