Budget 2012: Commuting small personal pension funds

As announced in the Autumn Statement 2011, the government will extend the existing pensions tax commutation rules to allow individuals aged 60 or over to commute funds of £2,000 or less held in personal pensions into a lump sum regardless of their other pension savings, subject to a maximum of two such commutations in a lifetime.†

Draft legislation was published for consultation on 6 December 2011 and the final legislation will take effect from 6 April 2012.

Read more news stories from the 2012 Budget Report