Removal of pension transfer charge
Did you know that the Government has announced that it will bring in regulations to remove the tax charge imposed where a person aged between 50 and 55 transfers his or her pension to another pension provider?
From 6 April 2010 the general rule is that only people who are 55 and over can draw their pension without facing an unauthorised payment charge. Those between 50 and 55 are also exempt from the charge if they started drawing their pension before 6 April 2010. However, if they transfer their pension to another provider, they must currently pay the charge. It is this charge that the Government wishes to remove, and the change will be backdated to 6 April 2010.