PARLIAMENTARY WRITTEN QUESTION
Pensions: Lump Sum Payments (2 March 2020)
Question Asked
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of raising the threshold at which people are able to take out small private pensions as a lump sum.
Asked by:
Mr Richard Holden (Conservative)
Asked by:
Mr Richard Holden (Conservative)
Answer
The small pots and trivial commutation rules are permissive sets of tax rules which pre-date the pension freedoms reforms introduced in 2015. The rules may allow an individual to access their pension as a lump sum if they are at least 55 years old, or retiring at an earlier age because of ill-health, and the value of the payment does not exceed £10,000 for small pots, or £30,000 for trivial commutation. The rules limit what arrangements can be accessed in this way.
The Government keeps all tax policy under review. Any changes will be announced through the Budget process.
Answered by:
John Glen (Conservative)
10 March 2020
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