The Chancellor announced some radical changes to Pension regulation in his March budget. Should you be taking advantage of these?
Changes now in effect –
- Income Drawdown max annual withdrawal increased from 120% to 150% GAD.
- Trivial commutation limit increased from £18,000 to £30,000.
- Small individual pensions that can be taken as a lump sum increased from £2,000 to £10,000.
Proposed changes coming into effect April 2015 –
- Requirement to buy an annuity removed
- However annuities are still available
- Everyone can now take 25% tax free lump sum and withdraw remaining pot as and when required subject to your marginal tax rate
- Flexible drawdown minimum reduced from £20,000 to £12,000
If you think any of this may apply to you contact us for more details.