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Introduction

STOP PRESS: This guidance note may be affected by the changes to the taxation of pensions made by FA 2024, Sch 9 from 6 April 2024 onwards. The commentary below covers the rules that apply prior to that date. Before continuing your research, see the Abolition of the lifetime allowance guidance note.

The structure of tax law in relation to registered pension schemes defines certain payments as ‘authorised’ member payments which generally attract no tax charge, and ‘unauthorised’ member payments which are subject to tax.

There are limits to authorised member payments and certain conditions that must be met in respect of some of them.

Since 6 April 2015, pensions ‘freedom’ means that pension funds from defined contribution (also known as money purchase) arrangements are much more accessible than they previously were but minimum age or other access restrictions (such as being in serious ill health if seeking to access funds before the minimum age) still apply.

For the rules up to 5 April 2015, see the Benefits