Les Cameron

Interesting article by @Frances_Ivens & @joshkirbywrites quoting @pensionstully (link in reply): pension providers disagree re: whether cooling off periods apply to tax-free lump sums; FCA "approached for comment". 1. If cooling off periods do apply, some savers could take tax-free cash before every Budget, just in case. 2. There would also be a difference between contract-based and trust based schemes. 3. If they don't, will the clarification be forwards-looking only? Or will the cash that savers have repaid be returned to them? The "Labour made me do it" headline is a bit silly - none of the stories about tax-free cash being under threat were briefed by the Government and the media knows that this stuff sells papers/generates clicks. But cuts to tax-free cash have not been ruled out and some on the Labour side have championed them. So anyone with a big DC pot over 55 was taking a bet on what would be announced in the Budget when they did/did not withdraw their £. And that will be the case at future fiscal events, too.

Removing higher rate income tax relief would always have been ambitious (and would’ve broken an election pledge). A new pension death tax and a cut in employer NICs relief still look the most likely pension tax raids thetimes.com/article/4cdf91…