Income Tax (Approved Pension Schemes) (Withdrawal of Funds) Regulations 2015
The above regulations have now been approved by Tynwald (16 June 2015) and came into operation on 19 June 2015. Whilst in draft format these regulations were widely used, but now formalised they will need to be adhered to.
Treatment of pension fund remnants is however new to the regulations. Where, following the withdrawal of funds in accordance with the regulations, a member’s pension fund reduces to £30,000 or less it is now possible for the remaining fund to be distributed as a single lump sum. The distribution is taxable and subject to age restrictions, but this provides added flexibility as, previously, it was not permitted at all.
Click here to view the regulations and if you have any questions then please contact Pensions Manager Louise Haynes on firstname.lastname@example.org.