Finance Bill 2014Print publication
On 17 July 2014, the Finance Bill received Royal Assent and became the Finance Act 2014 (FA 2014).
The main provisions affecting occupational and personal pension arrangements include:
- increasing the annual withdrawal limit for members who have chosen capped drawdown. This has increased from 120% of a comparable annuity to 150%. This has retrospective effect from 27 March 2014. In addition, a minimum income requirement for flexible drawdown has been reduced from £20,000 to £12,000. This also has retrospective effect from 27 March 2014
- the trivial commutation lump sum that a registered pension scheme can pay out has been increased. Trustees of such schemes are now able to commute members’ benefits of up to £30,000, so long as the total benefits in all registered pension schemes of such member does not exceed this amount. This also has retrospective effect from 27 March 2014. Furthermore, the commutation small lump sum has now increased to £10,000.