Pensions gobbledeguk

EdInvestor

It seems to have got even worse since A day

For example, look at this Revenue
"clarification" on income drawdown


Q.The requirements for unsecured pension in Sch 28 are modified for existing income withdrawal cases by draft Transitional Orders published on 16 June 2005 and 21 July 2005. However, from these it is not clear exactly how the rules apply and we would appreciate clarification in particular on these issues:

As a new unsecured pension year is deemed to commence on 6 April 2006, it is likely that the immediately preceding period will be less than 12 months. Presumably the existing maximum amount can be drawn in this period?

A. HMRC : confirmed that this is the case.

Q. The first reference period commences on 6 April 2006 and can be a period up to 6 April 2008. The first unsecured pension year commences on 6 April 2006 and ends at the earliest of 5 April 2007 or the date set out in the rules for the maximum to be assessed. If the first reference period extends beyond 5 April 2007 but ends before 6 April 2008, the second unsecured pension year may less than 12 months, although this is not clear from the draft Order. Can the maximum amount be taken in this shortened unsecured pension year?

HMRC : confirmed that is the case.


What on earth do they mean?