Tax Free Cash Lump Sum Disappearing

Tax Free Cash Lump Sum Disappearing.

We have noted the term “tax free cash” lump sum appears to be disappearing in all pension related matters issued by the Financial Conduct Authority, pensions and insurance companies.

The new term “Pension Commencement Lump Sum” (PCLS) appears to becoming the standard term used for the lump sum you withdraw from your pension when you first retire or take benefits.

Why is the term “Tax Free Cash” disappearing?

Why do you think?  We believe sooner or later, when the Chancellor does in fact push through the huge changes to pension tax relief that he ‘u-turned’ on in the March 2016 Budget, tax free cash lump sums may be be a thing of the past replaced with lump sums that suffer some tax penalty.

Consider this a warning.