The Inland Revenue ruling that company directors could not take their pension benefits whilst remaining non-executive directors has been overturned by the House of Lords.
The Revenue ruling came about when they tried to recover a considerable amount of money from a man that remained as an employee after taking his pension benefits. But, the House of Lords ruled that someone could take pension benefits in relation to employment that had ceased.
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This is great news, especially for family businesses where the older directors step back to make way for the younger ones. This means that even though the older directors will just be employees, they can still take their pensions whilst working for the same company.