RPSM03100090 - Technical Pages: Protecting pre 6/4/06 pensions rights from tax charges: Overview: Low pension ages

Protecting low pension ages

Under the new tax rules any benefits paid before the normal minimum pension age will be unauthorised member payments and taxed as such. (This does not apply if the reason for the early payment of benefits is ill-health - see RPSM08100070.) The normal minimum pension age is 55 (50 from 6 April 2006 to 5 April 2010).

Before 6 April 2006 some individuals had the right to take benefits before the normal minimum pension age. RPSM03106000 gives more information on what protection is available to allow benefits to be taken before the normal minimum pension age.

There is no protection for members of personal pension schemes or retirement annuity contracts that did not have the right to the payment of benefits before age 50.