At Budget 2014, the Chancellor announced the most radical change to the way people take their private pensions for nearly a century. From April 2015 people will be able to access their defined contribution savings as they wish at the point of retirement, subject to their marginal rate of income tax and scheme rules.
The tax changes which are needed to give effect to this policy are being legislated for through the Taxation of Pensions Bill 2014. This briefing note gives an overview of the measures included in the bill and aims to explain in a simple way what the bill does.
The majority of the details of the bill is contained in the schedule introduced by clause 1.
Updated to reflect amendments made to the Taxation of Pensions Bill during its passage through the House of Commons. These amendments include changes to the taxation of pensions on death and to the requirements on individuals to tell their pension providers when they access a pension flexibly.