HM Revenue and Customs (HMRC) has published a draft Statutory Instrument and draft Explanatory Memorandum for a technical consultation The changes include provisions for when an individual, is a beneficiary transfers their drawdown fund, then the ceding scheme administrator must provide certain information to the new scheme administrator. These will ensure that scheme administrators are able to apply the correct tax charges to any further payments of income withdrawal. They also provide that scheme administrators must provide information to beneficiaries about any lifetime allowance used up as a result of the new test.
New reporting requirements are also being introduced to support the pension liberation changes that were made in Finance Act 2014 to make it easier for HMRC to identify single member schemes which pose a significant risk in terms of pension liberation activities.
Comments on the drafts should be sent by email to email@example.com by 16 January 2015.