Posted August 2nd, 2010
Thankfully, HMRC has retreated from its stance on drawdown to drawdown transfers between age 50 and 55. The alternative name for drawdown is unsecured pension (USP)
Previously, an unauthorised payment charge was applied on the income drawn where an individual over 50 but under age 55 transfers their pension in payment to another provider. The charge was 55%.
This mainly caught those who tried to transfer to another pension provider before the minimum pension age increased from 50 to 55 on 6 April 2010.
It pleasing that HMRC has moved to remove this wrinkle from the pension landscape. Hopefully, (although I doubt it) this is the first of many changes from the coalition government.
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