HMRC has published draft guidance on the application of regulations to allow individuals aged 60 or over with personal pension pots of £2,000 or less to commute a maximum of two such pots in a lifetime.
Draft guidance on changes to the system for transfers of pension savings to Qualifying Recognised Overseas Pension Schemes (QROPS) has also been published.
Draft regulations relating to both changes were published on 6 December 2011.
The CIOT’s Low Incomes Tax Reform Group welcomed the draft regulations on small pensions.
Working with other representative bodies since early 2010, LITRG had been seeking an extension of the relief for cashing in small pensions to personal pensions schemes. Larry Darby, a pensions specialist, said: "This is welcome proposal from HMRC which will put small personal pensions on the same footing as small occupational pensions."
The move would cut the cost of administering small pension payments and offer individuals greater choice over how to use their money in retirement, he said.
HMRC has published draft guidance on the application of regulations to allow individuals aged 60 or over with personal pension pots of £2,000 or less to commute a maximum of two such pots in a lifetime.
Draft guidance on changes to the system for transfers of pension savings to Qualifying Recognised Overseas Pension Schemes (QROPS) has also been published.
Draft regulations relating to both changes were published on 6 December 2011.
The CIOT’s Low Incomes Tax Reform Group welcomed the draft regulations on small pensions.
Working with other representative bodies since early 2010, LITRG had been seeking an extension of the relief for cashing in small pensions to personal pensions schemes. Larry Darby, a pensions specialist, said: "This is welcome proposal from HMRC which will put small personal pensions on the same footing as small occupational pensions."
The move would cut the cost of administering small pension payments and offer individuals greater choice over how to use their money in retirement, he said.
