Limit or scrap tax on pension withdrawals for UK care purposes, ABI urges

Martin Richmond
clock • 4 min read

HM Treasury should scrap or limit tax on pension withdrawals if the funds are to be used for care related purposes - including if they are to be used for an immediate needs annuity (INA) - the UK's Association of British Insurers (ABI) says.  In its Prepare for Care report - published yesterday (9 February) - the trade body argued the current taxation rules for pensions withdrawals, particularly for larger withdrawals which can be taxed at a rate between 40 to 45%, makes it considerably more difficult for savers to consider using their pensions as an option to pay for their care. The ...

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