Pension transfers for people aged from 50 to 55

04/01/2011

The Government announced in July 2010 its intention to bring forward regulations to remove the unauthorised payments tax charge where an individual aged 50 and over but under 55 transfers their pension in payment to another pension provider.

The announcement also made it clear that the regulations would be backdated to cover transfers made on or after 6 April 2010.

Following informal consultation, the Government has decided that the new legislation should also cover situations where an individual buys a scheme pension or an annuity using funds from an unsecured pension fund.

We believe that common sense has at last prevailed: this would have been unnecessary if the Government would cease implementation of scheme specific legislation which is often a barrier to the free movement of individuals' pension monies between providers.