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Article: Pensions' tax-free lump sum threatened.
- Article from:
- The Evening Standard (London, England)
- Article date:
- September 26, 2002
- Author:
CopyrightCOPYRIGHT 2002 Solo Syndication Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: HARRIET ARKELL
THE tax-free lump sum from pensions may be scrapped under plans being considered by the Inland Revenue, it was reported today.
The move to do away with what is seen as one of the only tax concessions the Government makes to encourage pension-saving would affect millions already facing financial hardship when they retire.
At the moment people contributing to final-salary pensions may usually take up to one-and-a-half times their final salary from their pension in a tax-free lump sum when they retire. Those paying into personal or moneypurchase pensions may take up to 25 per cent tax-free.
The scheme costs the ...