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Treasury update
21 February 2022
At a Glance
Issue Summary
The statement addresses uncertainties regarding the tax treatment of payments from collective money purchase pension schemes during wind-up.
Action Requested
The Government confirms its commitment to ensuring that members can designate funds into drawdown and receive periodic income as authorised payments, including pursuing further legislative change if necessary. Tax guidance and draft clauses will be published in due course.
Key Facts
- The Pension Schemes Act 2021 set the framework for collective money purchase pension schemes.
- The Finance Act 2021 outlined the tax regime for these schemes.
- There are two instances of uncertainty about how benefits would be treated during wind-up: designating funds into drawdown and receiving periodic income.
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