The Government has announced a number of minor amendments to the pension tax rules following the introduction of pension flexibility in April 2015, which include:

  • removing the requirement that a serious ill-health lump sum can only be paid from an arrangement that has never been accessed;
  • replacing the 45% tax charge on serious ill-health lump sums paid to individuals who have reached the age of 75 with tax at the individuals' marginal rate;
  • enabling dependants with drawdown or flexi-access drawdown pension who would currently have to use all of this fund before the age of 23 or pay tax charges of up to 70% on any lump sum payment, to continue to access their funds as they wish after their 23rd birthday.