Commons Sense

House of Commons · Written Ministerial Statement

Temporary changes to pensions tax in the context of abatement for returning workers

22 April 2020 · Treasury

Proposed by John Glen Con Salisbury

Benefits & Welfare

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The government will temporarily suspend tax rules that impose significant tax charges on pension income for recently retired individuals aged 50 to 55 from March 1 to June 1, 2020.
  • This measure aims to protect pension income for those returning to work during the Covid-19 pandemic.
  • The changes are designed to support public sector workers who are rejoining the workforce.

Issue summary

The statement addresses temporary changes to tax rules for public sector workers returning to work during the Covid-19 pandemic.

Action requested

The government intends to temporarily suspend tax rules that would otherwise apply significant tax charges to pension income received by recently retired individuals aged between 50 and 55, effective from March 1 to June 1, 2020. This measure will help ensure these individuals' pension income remains protected if they return to work.

Key facts

  • The temporary change applies to payments made in the period from 1 March to 1 June 2020.
  • The measure is for public sector workers aged between 50 and 55 who are recently retired and wish to return to work due to Covid-19.
  • HMRC will set out operational guidance in due course.
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