FCA and HMRC pension tax-free cash cancellation stance 'belies belief'

Reminded firms that, in practical terms, no cancellation rights exist on PCLS

Jenna Brown
clock • 5 min read
Credit: iStock
Image:

Credit: iStock

The Financial Conduct Authority (FCA) has issued a reminder to firms that no cancellation rights exist for pension commencement lump sums (PCLS) after HM Revenue & Customs (HMRC) highlighted potential tax charge issues in its latest newsletter.

Commentators said the FCA/HMRC stance "belies belief" and runs the risk of some people facing a 70% tax charge should they change their mind after taking a lump sum. HMRC's pensions schemes news...

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Jenna Brown
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Jenna Brown

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