Taxation of Pension Schemes (Transitional Provisions) (Amendment) Order 2011 comes into force

Implementation date: 6 April 2011

The Order prescribes that, where an individual is entitled to a tax-free lump sum from his or her pension scheme of more than 25% of the fund's value, or to a protected pension age, there is a period of six months to arrange for payment of the associated benefits. A person who is aged from 50 to 54 who is entitled to a pension but wishes to change to another pension, or who had not started taking the pension before 6 April 2010, may commence taking it without incurring a charge to tax. Where an individual became entitled to a tax-free lump sum before 6 April 2010, but it is not paid until after this date, it can be paid free of tax. The Order can be viewed on the UK legislation website.