The 2014 Finance Bill - Pensions

  • Minimum income requirement for flexible drawdown reduced from £20,000 to £12,000.
  • Capped drawdown limit increased from 120% to 150% of equivalent annuity.
  • Total pension wealth before lump sums cannot be received under trivial commutation rules increased from £18,000 to £30,000.
  • ‘Small pots limit’ on pots that can be taken as a lump sum regardless of total pensions wealth increased from £2,000 to £10,000.
  • Number of small pots that can be taken as a lump sum increased from two to three.
  • These changes are temporary measures pending proposed further liberalisation of pension rules in 2015.
  • New powers for HMRC to prevent ‘pension liberation schemes’ being registered, and other regulatory powers.
  • Individual protection regime on reduction of standard lifetime allowance from 6 April 2014.