Policy paper

Draft legislation: the Registered Pension Schemes (Authorised Payments) (Amendment) Regulations 2017

This draft legislation introduces a new authorised payment and sets out the conditions that must be met in order for the payment to be authorised.

Documents

Details

HM Revenue and Customs has published draft regulations and draft explanatory memorandum for a technical consultation.

The new authorised payment will be known as the pensions advice allowance payment. This payment may be made by registered pension schemes directly to a regulated financial advisor, for either the member of the scheme or a beneficiary of such a member. It allows the individual to use up to £500 from the pension pot to pay towards the cost of receiving retirement financial advice and/or the cost of implementing such advice. Individuals are able to use this facility no more than once in any one tax year, and no more than 3 times in total.

More information can be found in the tax information and impact note also published.

Comments on the drafts should be sent by email to pensions.policy@hmrc.gsi.gov.uk by 28 February 2017.

Published 7 February 2017