• Skip to main content
  • Skip to footer
Mullen Stoker

Mullen Stoker

Chartered Accountants in Durham

Call Us Now 0191 374 0300

  • Facebook
  • LinkedIn
  • Phone
  • Twitter
  • Services
    • Accountancy & Tax
    • IT Solutions
    • Business Services
  • About Us
    • Our Story
    • Our Team
  • News and Views
  • Online Resources
    • Calculators
    • Tax Rates & Tables
    • Downloadable Forms
    • Tax Application
  • Testimonials
  • Contact
  • Client Login

Pension decision period extended

Last month we touched on the changes that HMRC is introducing to the treatment of defined contributions pensions. HM Treasury has now issued the following update that clarifies the position of people who have recently taken a tax-free lump sum from their defined contribution scheme.

“The government has announced today (Wednesday 9 April) that people who have recently taken a tax-free lump sum from their defined contribution pension will be given 18 months rather than 6 months to decide what they wish to do with the rest of their retirement savings, and will not be put at a disadvantage should they wish to wait to access their pension savings more flexibly.

This follows an announcement on 27 March confirming that the government would take action to ensure that people do not lose their right to a tax-free lump sum if they would rather use the new flexibility this year or next, instead of buying a lifetime annuity.

Under current tax rules, once a tax free lump sum has been taken, individuals have six months before they are required to make a decision regarding their pension, either by buying an annuity or entering into capped drawdown.

Currently, if this is not done, the lump sum is then taxed at 55%. This extra time will allow people to make the right decision for their pension.”

Exchequer Secretary to the Treasury, David Gauke, said:

“At Budget the government announced the most fundamental change in the way that people access their pension in almost a century, ensuring that over 400,000 people who have worked and saved hard will be able to access their retirement savings more flexibly. However, we recognise that decisions people take regarding their pensions are important and take time. This extension to the decision making period will give people the opportunity to take full advantage of the new flexibilities introduced at the budget.”

Category iconUncategorized

Xero Gold Partners
ICAEW Chartered Accountants
Clear transparent pricing champions

Footer

LATEST NEWS

  • Inheritance Tax proposals spark concern for farming families 10th July 2025
  • Slowing growth and rising borrowing -what this means for your business 8th July 2025
  • Are you ready for Companies House ID checks? 7th July 2025

INFORMATION

Sunderland Accountancy

Durham Accountancy

South Shields Accountancy

Newsletter

Business & Tax News

The Budget

ABOUT US

We bring a fresh, dynamic and friendly approach to Accountancy services. We are proud to say you will not find Mullen Stoker to be a stereotypical Accountancy Practice as we have new ideas, add value to what are known to be more traditional accountancy services and are able to provide high quality IT Solutions

We use telephone tracking numbers to link a user’s call to the marketing channel that they originated from. This is done using cookies, you can choose to decline cookies using your browser settings if you would prefer not to be tracked. We may record calls for training or monitoring purposes.

This firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.

Copyright © 2025 Mullen Stoker Chartered Accountants · Privacy Policy · Terms & Conditions