Pensions: Tax Yields

(asked on 13th March 2017) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, how much tax revenue has been generated from people encashing their pension entitlement since 2015.


Answered by
 Portrait
Jane Ellison
This question was answered on 16th March 2017

From April 2015, individuals aged 55 or over have had the option to flexibly access their pension.

The latest estimate of the tax revenue from the introduction of pensions flexibility was set out in the Office for Budget Responsibility’s Economic and Fiscal Outlook in March 2017[1]. This stated, in paragraph A.23, that £1.5 billion of tax revenue was received from pension flexibility in 2015-16, and £1.1 billion is forecast to be received in 2016-17.

[1] http://cdn.budgetresponsibility.org.uk/March2017EFO-231.pdf

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