Budget Update

17 March 2005


In the 2005 Budget, the Chancellor confirmed that there will be a number of further minor and technical changes to the proposed new simplified pensions regime which will come into effect on 6 April 2006.

This supplements the proposed changes announced by the Inland Revenue on 16 February [see news item on 21 February]. In addition, the Inland Revenue will consult on an anomaly in the proposed new rules under which it is possible, in certain circumstances, to have a higher tax-free lump sum than 25% of the member's fund.

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