Policy paper

Draft legislation: the Taxation of Pensions Bill

Draft legislation and other documents for the changes to the pension tax rules announced at Budget 2014 that give individuals greater flexibility to access their pension savings.

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Pension flexibility: (draft) Taxation of Pensions Bill

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The government announced at Budget 2014 proposals to allow people aged 55 and above, from April 2015, access to their money purchase pension savings as they wish during retirement, subject to their marginal rate of Income Tax.

The consultation document Freedom and Choice in Pensions published on 19 March 2014 set out a key part of a wider set of reforms announced at Budget 2014 and invited comments. A summary of the responses to that consultation was published on 21 July 2014.

An updated Tax Information and Impact Note for this measure Pension flexibility 2015 and draft guidance have also been published.

The government announced that the required tax changes would be made in an autumn Taxation of Pensions Bill and that draft legislation would be published for a 4-week technical consultation at the beginning of August. These documents form that consultation.

Comments on the drafts should be sent by email to Pensions.policy@hmrc.gsi.gov.uk by 3 September 2014.

Published 6 August 2014
Last updated 21 October 2014 + show all updates
  1. Pension Flexibility: Draft guidance attachment replaced.
  2. New version of attachment Annex_D_Flexibility_15_Guidance.pdf added
  3. First published.