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Pensions tax changes for returning workers

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John Glen, Economic Secretary to the Treasury, has issued a written statement in the House of Commons which proposes temporary changes to pensions tax rules for public sector workers returning to help in the fight against Covid-19.

The statement says that ‘the government intends to temporarily suspend tax rules that would otherwise apply significant tax charges to pension income received by recently retired individuals aged between 50 and 55’ and that the changes will ‘initially’ apply for payments made in the period from 1 March to 1 June 2020.

In a 23 April letter to Kit Malthouse, Minister of State for Crime and Policing, Glen also notes that HMRC ‘will set out detailed operational guidance in due course’ and that any measures will apply only to those returning to roles in core sectors as a result of Covid-19.

Issue: 1485
Categories: News