News article
HMRC reconsiders interpretation of pension transfer rules
11 June 2010
Further to the Press Release "Rowanmoor Pensions urges Pensions Minister to take action over pensions trap" issued in the morning of 11 June 2010:
HMRC has taken legal advice and has today (11 June 2010) confirmed that transferred in USP funds, where the individual concerned is under the age of 55 will, under normal circumstances, be a recognised transfer. Therefore, transfers to new providers will not incur an unauthorised payment tax charge, a surcharge and scheme sanction charge as HMRC previously advised. However, the situation remains that members aged below 55 who are already drawing an income from their pension will lose that right on transferring to a new provider.
Robert Graves, Head of Technical Services at Rowanmoor Pensions, and Chairman of the Association of Member-Directed Pension Schemes (AMPS) comments:
"We are pleased that HMRC seems to be listening to the industry and has now reappraised the legislation, so that members who are on unsecured pension below the age of 55 are not prevented from switching providers. HMRC should now reconsider its position, which prevents those that do transfer from drawing an income from the new scheme, or purchasing an annuity before they reach age 55. This is extremely unfair and restrictive as it is removing benefits and rights already in place simply because a member wants to move to a new provider. This remains an issue that the Pensions Minister, Steve Webb, should be looking to rectify."
For further information on Rowanmoor Pensions please visit the website at http://www.rowanmoor.co.uk
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For further information, please contact:
Rowanmoor Pensions
Robert Graves
Head of Technical Services, Rowanmoor Pensions
08445 440 716
robert.graves@rowanmoor.co.uk
Anna Hopkinson
Marketing Manager, Rowanmoor Pensions
08445 440 667
anna.hopkinson@rowanmoor.co.uk
Polhill Communications
Jenette Greenwood/Vanessa Chance/Paula Nugent
020 7655 0520
rowanmoor@polhill.com
Polhill Communications
About Rowanmoor Pensions
Rowanmoor Pensions SIPP features:
- personal, portfolio based, administration service;
- expert support from technical and sales consultancy teams;
- extensive flexibility and choice at retirement, including scheme pension;
- widest investment opportunities available in the SIPP market;
- integrated links to a proven IFA investment platform;
- streamlined process for settling adviser fees.
- Rowanmoor Pensions was awarded best SSAS provider in the 2006, 2007 and 2008 Pensions Management Technology Administration and Service Awards.
- Rowanmoor Pensions was awarded best SSAS provider in the 2008 and 2009 Moneyfacts Investment, Life and Pensions Awards.
- The Rowanmoor Pensions website is www.rowanmoor.co.uk
- Rowanmoor Pensions provides business financial planning, actuarial and pension advisory services to IFAs, accountants and their clients.
- Rowanmoor Pensions currently employs over 200 people and administers around 4,200 schemes.
- Rowanmoor Pensions is a trading name of Rowanmoor Group plc (No. 5792242).
- Rowanmoor Personal Pensions Limited, a subsidiary of Rowanmoor Group plc is the scheme Administrator and scheme operator for schemes established under a Rowanmoor Pensions Family Pension Trust and the Rowanmoor Pensions SIPP and is authorised and regulated by the Financial Services Authority (Register number 458260).