Autumn Statement Explained: Pensions Recycling

From April 2015 individuals who have accessed their pension schemes have been able to re-invest tax free funds thus obtaining tax relief on the new contribution – referred to as pensions recycling. The Government previously introduced a restricted annual allowance of £10,000 for individuals whose pensions were in drawdown; however, the Chancellor considers this to be too high to prevent recycling and has today issued a consultation document seeking views on its proposal to reduce the money purchases annual allowance to £4,000 from April 2017.

For more information please contact Anne Irvine.