HMRC has announced the publication of the draft Registered Pension Schemes (Transfer of Sums and Assets) (Amendment) Regulations 2011 and Taxation of Pension Schemes (Transitional Provisions) (Amendment) Order 2011.
These regulations, backdated to 6 April 2010, have been introduced to rectify an earlier legislative drafting error, relating to transfers of pensions in payment on or after 6 April 2012 by individuals over 50 but under 55. The legislation provided for unintended tax charges that could be imposed if someone aged 50 or over transferred their pension before age 55 to a new provider or changes to a different type of pension.
Comments on the drafts can be submitted to HMRC until 21 February 2011.
Please click on the following link to view HMRC’s announcement online.