The Draft Finance Bill 2011 has been published today and it contains significant changes to how income will be taken from pension funds in the future.
The new legislation will come into effect from 6th April 2011 and includes changes to:
Compulsory annuitisation and ASP (Alternatively Secured Pension)
Tax free lump sums
Maximum and minimum income limits
How death benefits are paid and the tax on such payments
The new legislation will primarily affect those people already in income drawdown or who are approaching retirement and considering their options.
Annuities and ASP
The requirement to secure an income by age 75, which is generally done in ...