2 thoughts on “UK taxman cannot disclose pension recycling data”

  • I am pretty sure this statement is inaccurate

    “Pension recycling happens when an individual withdraws more than the 25% tax-free lump sum allowed under pension freedoms, to then invest it in another pension scheme”.

    The whole point is that re-investing the TFC and obtaining tax relief on it, is recycling. You are basically obtaining tax relief on something you have not actually been taxed on.

    investing any part of the TFC in another pension is recycling, not investing the part above the 25%.

    • Christopher Lean says:

      There are 6 key tests that all have to be proven for HMRC to apply penalties for recycling. Pre-planning being one of them, and somewhat hard to prove. Re-investing some of the PCLS will not necessarily be treated as recycling.

      This issue of the MPAA is confusing here as I don’t think that was one of the questions asked under the FOI, yet Steven Cameron mentions it.

      While I suspect many will have fallen foul of the MPAA rules, I am not convinced many will have had a problem with recycling penalties.

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