HMRC has been forced to issue a warning to savers after a last-minute change to its new pension tax system, which has seen the Lifetime Allowance scrapped for a lower limit on lump sum payment
HMRC has been inundated with complaints following last-minute alterations to its new pension tax system, which has replaced the Lifetime Allowance with a lower limit on lump sum payments. HMRC recently advised some clients to postpone taking their pension benefits or transferring them.
Andrew Tully, technical services director at Nucleus Financial, expressed his concerns to industry publication Pension Expert: "To suggest at such a late stage that people should delay taking benefits or transferring shows how poorly these changes have been implemented. Mr Tully added: "We are only a few days away from implementation so some advisers and customers will have made plans and committed to use funds.
Feedback from industry has highlighted a few areas where further technical changes are required. ""HMRC is committed to working closely with industry to support schemes and members where they would benefit from waiting for these changes," reports Birmingham Live.
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