Changes to the minimum pension age
HMRC have published two pieces of draft legislation relating to the increase in normal minimum pension age in April 2010. This change was part of a package of measures that were announced back in 2003. From 6 April 2010 the normal minimum pension age increased from 50 to 55. The changes applied to both occupational and personal pension schemes.
The new legislation will remove unauthorised payments tax charges where an individual aged between 50 and 55 transfers their pension in payment to another pension provider. The legislation will be backdated to cover transfers made on or after 6 April 2010. The regulations will be relevant to an individual who is aged 50 and over, but under 55, and who has already satisfied the normal minimum pension age test of 50 and over prior to 6 April 2010.
Comments on the draft legislation should be sent to HMRC by post or email by 21 February 2011.