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

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 ...