Guidance

Newsletter 184 — August 2026

Published 27 August 2026

Normal minimum pension age

On 6 August 2026, HMRC published draft regulations for a technical consultation on the changes to the normal minimum pension age.

The draft regulations introduce provisions so that in specified circumstances, members who were aged 55 or 56 on 5 April 2028 are treated as having reached age 57 immediately before certain pension payments are made. The changes are intended to ensure that specified pension benefits and lump sums paid on or after 6 April 2028 remain authorised payments for tax purposes where the relevant entitlement arose before the normal minimum pension age increase takes effect.

This consultation closes on 28 September 2026. Replies should be sent to: policypensions@hmrc.gov.uk

Non-statutory clearances

The Pensions Tax Manual sets out in PTM011300 what advice HMRC will give when asked. This includes requesting non-statutory clearance.

We want to remind you that if you are making a clearance application to HMRC, you must give us all the information relevant to your application. Read more information about what you need to include in your application for non-statutory clearance.

You should only make a clearance application if:

• your question relates to a specific scheme
• you have read and considered the in-depth guidance on the pensions tax rules in the Pensions Tax Manual

If you have read this guidance and are still not clear, you can apply to HMRC for a clearance.

You must make sure that as part of your clearance application you:

• explain why the rules are open to more than one interpretation
• summarise the different interpretations and explain why the tax consequences are uncertain
• specify the pages of our guidance (and parts of the pensions tax legislation) that are unclear

We will only provide clearance in cases of genuine uncertainty and where you have given all the information required under the clearance service. If your clearance application does not meet the criteria or you have not given us the correct information, we will not give you clearance.

Disposal of non-standard assets

HMRC has received a number of queries in respect of disposing of non-standard, or ‘toxic’, assets from registered pension schemes.

HMRC does not impose any restrictions on the types of assets a pension scheme can invest in, nor does HMRC have a responsibility to assess the value of assets within the scheme.

If a registered pension scheme sells an asset for less than it’s worth to a member, sponsoring employer or connected person, the difference between the amount paid and the amount which might be expected to be paid to a person who was at arm’s length is treated as an unauthorised payment. Information on investments can be found in Pensions Tax Manual PTM121000 - Investments: essential principles.

Where an asset is identified by a pension scheme administrator as being genuinely worthless then the disposal of such an asset is unlikely to attract unauthorised payments charges. Those that are disposed of that do have a value could result in an unauthorised payment. It is the responsibility of the pension scheme administrator to undertake the appropriate due diligence to determine the value of any assets.  

HMRC acknowledges that the value of an asset may change over time. In some instances, there may be unauthorised payments charges where information comes to light that the value of the asset at the time of disposal was of greater value than the sale price, but this will be dependent on the facts and circumstances of each case.

An asset may be transferred out of a scheme into another registered pension scheme if it meets the conditions to be a recognised transfer. If the scheme rules allow, a partial transfer of assets is possible. However, where a pension is already in payment such a transfer will result in an unauthorised payment. Further information can be found in Pensions Tax Manual PTM100010 - Transfers: essential principles.

Where an unauthorised payment arises as a result of asset disposal:

• a member may be subject to an unauthorised member payments charge and surcharge (where appropriate)
• the scheme administrator will be subject to a scheme sanction charge

The usual rules for making an application to discharge a surcharge, as set out in Pensions Tax Manual PTM134700 - Application for discharge from the unauthorised payments surcharge, and a scheme sanction charge as set out in Pensions Tax Manual PTM135400 - Application for discharge from the scheme sanction charge would apply. Where an unauthorised payment occurs a pension scheme administrator must report this to HMRC.  Read guidance on reporting unauthorised payments and paying the unauthorised payments charge.

Where there is genuine legislative uncertainty regarding the disposal of assets, individuals can submit a non-statutory clearance to HMRC. They must meet the relevant criteria to do so. Read information on HMRC’s non-statutory clearance service. For clarity, this service is not to be utilised to seek assurances about the value of assets or confirm the tax consequences of proposed transactions to dispose of assets.

Low earner’s pension payment — update for pension scheme administrators

In pension schemes newsletter 166 — January 2025, we confirmed the government’s commitment to make payments to individuals affected by the low earner’s anomaly, now referred to as the low earner’s pension payment.

The payment helps make sure low earners achieve similar outcomes whether their workplace pension scheme operates relief at source or a net pay arrangement. It applies from the 2024 to 2025 tax year onwards, with eligibility assessed separately each year.

The Registered Pension Schemes (Net pay Arrangements) Regulations 2026 (SI 2026/671) were laid before Parliament on 23 June 2026. The regulations support the delivery of the low earner’s pension payment by ensuring payments do not affect entitlement to benefits or create National Insurance reporting requirements. The legislation also takes account of a wider range of reliefs, allowances and nil-rate bands when determining eligibility. 

As set out in the August 2026 issue of the employer bulletin, HMRC will contact eligible individuals directly. Employers, payroll teams and pension scheme administrators do not need to apply, assess eligibility, amend payroll records or contact HMRC on behalf of individuals.

Payments for contributions made in 2024 to 2025 will begin in the coming months. HMRC will take a phased approach, gradually expanding the rollout over the remainder of the year and into early 2027.    

Individuals do not need to contact HMRC. Eligible individuals should wait to be contacted by post or through their personal tax account and follow the instructions provided to accept their payment.

We will provide further updates in future newsletters.

Private pension statistics

On 30 July 2026 HMRC published the latest statistics on personal pensions.

These statistics provide:

• the number of members and value of individual contributions to personal pensions
• the estimated cost of pension Income Tax and National Insurance contribution relief
• statistics on annual allowance and lifetime allowance charges
• statistics on taxable flexible payments from pensions

This publication also includes a document which explains the methodologies used to produce these statistics.

Pension savings statements

Pension scheme administrators must provide members with either a standard or money purchase pension savings statement where the relevant conditions are met. This includes where a member’s pension input amount for that scheme exceeds the annual allowance for the tax year, or where a member is subject to the money purchase annual allowance and exceeds that allowance in that scheme. The deadline for doing this is 6 October after the end of the relevant tax year.

Where a pension scheme administrator issues a pension savings statement, they must also report this to HMRC through an event report. They must do this in the same tax year that they give the statement to the member. For more information read Pension Tax Manual PTM161600 - Information and administration: reportable events 18 and 21 to 23.

Providing accurate statements on time helps members understand whether:

• they’ve exceeded their annual allowance
• they need to report a pension savings tax charge through Self Assessment

Late, missing or inaccurate statements make it harder for members to get their tax right. This may lead to avoidable errors or amendments to their tax return.

Before the October deadline, scheme administrators should check their processes and make sure they can issue statements on time.

Scheme administrators can find further information in:

Check your pension scheme member’s annual allowance

Information pension scheme administrators must give to members

Defined benefit pension scheme surplus payments to members

In pension schemes newsletter 183 we announced the publication of draft legislation to allow trustees of registered defined benefit occupational pension schemes to make payments of surplus directly to scheme members as an authorised member payment.

These surplus payments will be treated as taxable pension income and normal PAYE rules will apply. A new real time information (RTI) data item will be introduced to identify and report these payments from April 2027.

We will provide further information in a future newsletter.