Introduction

The structure of tax law in relation to registered pension schemes defines certain payments as ‘authorised’ member payments which generally attract no tax charge, and ‘unauthorised’ member payments which are subject to tax.

There are limits to authorised member payments and certain conditions that must be met in respect of some of them.

Since 6 April 2015, pensions ‘freedom’ means that pension funds from defined contribution (also known as money purchase) arrangements are much more accessible than they previously were, but minimum age or other access restrictions (such as being in serious ill health if seeking to access funds before the minimum age) still apply. See also Simon’s Taxes, E7.201B.

For taxation of pension benefits, see the Pension income and lump sum allowances from 6 April 2024 guidance note.

Defined benefit arrangements remain subject to tighter restrictions. In some circumstances, members may be able to transfer from a defined benefit scheme to a money purchase arrangement if they wish to access their funds under pensions freedom. This