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Widows’ plea for pledge on transfers

Scottish Widows is calling on the Inland Revenue to guarantee that provider backlogs of pension fund transfers not processed by A-Day will not be blocked.

The firm is concerned that a pre-A-Day rush to transfer ‘ pension funds to protect tax-free cash rights may strain life office systems. It wants guarantees that where the paperwork has gone through but cash has not been transferred by the life office, the investor can complete the switch.

The ABI met the Revenue last week to discuss the issue but declines to reveal the outcome of the talks.

Widows head of pension market development Iain Naismith says the Finance Act is fairly rigid and there are no written guarantees of leeway being offered around A-Day.

He says: “We are raising the issue with the Revenue and we want to see if it will take a more relaxed approach than the legislation seems to allow for.”

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