Drawdown Tables For Calculations From 31 January 2025

Member firms may be aware that HMRC sent an email on Saturday morning advising that there were new tables to be used for calculating the maximum income from capped drawdown pension funds.

We have spoken to HMRC about the ramifications of the update, being that there hasn’t been enough warning provided for pension providers and back office system providers to immediately apply these and the consequential issues with them being applied retrospectively.  They have confirmed that the update is an error.

They are in the process of removing the tables from their website and the March Pension Schemes Newsletter will provide more clarity of the updates, along with an offer of a greater notice period to allow schemes to adapt to the change.