Limit or scrap tax on pension withdrawals for care purposes, ABI urges

Trade body says current tax rules discourage savers from using pensions to fund care

Martin Richmond
clock • 3 min read
Limit or scrap tax on pension withdrawals for care purposes, ABI urges

HM Treasury should scrap or limit tax on pension withdrawals if the funds are to be used for care related purposes – including if they are to be used for an immediate needs annuity (INA) – the Association of British Insurers (ABI) says.

In its Prepare for Care report - published yesterday (9 February) - the trade body argued the current taxation rules for pensions withdrawals, particularly for larger withdrawals which can be taxed...

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