Welcome to the Techcentre
This is where our regulatory and legislative subject matter experts discuss the subjects that matter. Let’s talk tech.
Budget 2025 – stay ahead
Get a breakdown of the Budget, updates, and the latest resources from our technical experts.
Upcoming webinar
Get clarity on Budget 2025 changes and what they mean for your clients
This focused session will give you practical planning ideas to keep clients on track and protect their wealth - saving you time and giving you confidence in the details that matter most.
Tuesday 16 December at 10am
Expert: Lisa Webster
Tax-free pension withdrawals: HMRC and FCA clarify cancellation rights
HMRC and the FCA confirm that once clients withdraw, this can’t be undone – rushing could lock them into an irreversible decision. With possible tax changes ahead, waiting could help you keep options open.
How the Budget changes might impact your clients’ finances
Pre-budget withdrawals spike again
Budget 2025: what advisers need to know
Pensions and inheritance tax
We’ve created a range of resources to support your understanding of the ever-changing pensions and inheritance tax (IHT) landscape.
IHT and the consequent complications that lie ahead
HMRC has confirmed the Government’s decision to bring pensions within the scope of IHT, with the change set to take effect from 6 April 2027.
To help you understand what this means in practice, and what potential problems may arise, our technical experts have put together a new adviser update. It covers:
- feedback from the technical consultation;
- how IHT on pensions will be paid;
- potential problems and complexities; and
- when pension funds may also be subject to income tax.
In the Budget on 26 November changes to the process of paying IHT from pensions were announced, with personal representatives being given the power to instruct the pension to withhold funds and pay the IHT liability. Details of this are expected to be included in the Finance Bill. We will issue a new update with our analysis once this has been released.
Pensions and IHT support
Explore expert opinion on the potential implications of including pensions in inheritance tax. On this page, you’ll find:
- a brief recap video;
- in-depth articles, and
- more resources to help you navigate the topic with confidence.
Delivered straight to your inbox – expert insights on all the latest regulatory and legislative changes impacting you and your clients.
Technical guides
Make sure you’re well prepared for client conversations, with our Technical Team’s expert adviser guides.
Technical guide library
Access our collection of guides and updates. It’s all there to help you stay informed, and confidently navigate the latest industry developments.
You’ll find guides on a range of topics, including:
- pension contributions;
- pension benefits;
- transitional arrangements; and
- ISAs.
Pension rules – what’s changed?
Important changes came into force on 18 November 2024 following the end of the lifetime allowance. Access the resources we’ve compiled to help you navigate the fallout.
Transitional arrangements
Learn more about HMRC's latest guidance on transitional tax-free amount certificates (TTFAC).
Changes still needed to get lifetime allowance removal right
Explore why TTFACs are problematic, and the changes needed to improve things.
Testing pension benefits
Understand the best ways to manage your clients’ benefits post lifetime allowance (LTA).
Corrections to pension rules
The dust has settled after the LTA removal and clients’ positions have now been corrected.
Trending topics for you this month
Stay on top of the technical topics making an impact today.
Understanding UK trust taxation
A scheme pays refresher and reminder
Methods of giving pension tax relief
Three key points on how people are accessing their pensions
Bitesize Technical
Delve into our range of short, easily digestible videos on key technical challenges.
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Pension protection overview
When the lifetime allowance was introduced back in 2006, two forms of pension protection were introduced, and further forms were added each time the lifetime allowance was cut.
As part of our Bitesize Technical series, Senior Technical Consultant Lisa Webster looks at how these protections work under the new post-lifetime allowance regime.
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Enhanced protection explained
As part of our Bitesize Technical series, Senior Technical Consultant Lisa Webster looks at issues like:
- why enhanced protection was introduced;
- what conditions needed to be met to qualify for it;
- what the benefit was of holding enhanced protection; and if lump sum protection could be held with enhanced protection.
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Primary protection explained
As part of our Bitesize Technical series, Senior Technical Consultant Lisa Webster breaks down:
- why primary protection was introduced;
- what conditions needed to be met to qualify for it;
- the benefit of holding primary protection; and
- what it means to hold primary protection now that the LTA has been abolished.
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Overseas pensions transfers explained
Our Senior Technical Consultant, Joshua Croft, explains the rules around overseas transfers, covering what gives a scheme QROPS status and more.
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Transfers where members have protection
Our Senior Technical Consultant, Joshua Croft, discusses what happens to scheme-specific protections on transfer.
Topics covered include:
- the rules around transfers where members hold protection;
- the transfers which qualify as a block transfer;
- transfers that aren’t eligible for block transfers; and
- necessities for single transfer requests.
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Statutory right to transfer
The Pension Schemes Act 2021 restricts the statutory right to transfer pensions, unless specific conditions are met.
In this Bitesize Technical edition, our Senior Technical Consultant, Joshua Croft, breaks down the rules and looks in detail at:
- the different checks that are made by pension schemes;
- what happens if there are any red flags; and
- what occurs when statutory rights don’t exist.
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Pension transfers overview
A pension transfer involves relocating funds from one pension scheme to another. In the UK, most pension scheme members have a legal right to transfer, though certain conditions may apply.
As part of our Bitesize Technical series, Senior Technical Consultant Joshua Croft explains the rules surrounding pension transfers, covering topics like:
- what’s involved in the process;
- how transfers can be made; and
- if there are age restrictions.
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Pension sharing and the impact on protections
In some specific circumstances, pension sharing orders can impact those with protections.
In this short video, our Senior Technical Consultant, Joshua Croft, explains when pension sharing can impact protections, including:
- when protections may be lost;
- which protections are unaffected; and
- what disqualifying pension credits are.
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Pension offsetting
What does pension offsetting mean for your clients during divorce?
Our Senior Technical Consultant, Joshua Croft, explains as part of our Pensions and Divorce Bitesize Technical series.
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Pension earmarking overview
As part of our Bitesize Technical series, our Senior Technical Consultant, Joshua Croft, takes a look at what pension earmarking is, and how it works.
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Pension sharing orders
A Pension Sharing Order (PSO) ensures a clean financial break in a divorce by transferring the awarded share into the ex-spouse's chosen pension scheme, giving them full control over the investments and benefits.
Our Senior Technical Consultant, Joshua Croft, breaks down what PSOs mean for your clients.
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Charity lump sum benefits
What restrictions are there on charity lump sums paid from pensions? Senior Technical Consultant, Lisa Webster considers how the rules affect payments:
- with, or without nominations in place;
- on death pre-age 75;
- on death post-age 75; and
- when there are dependants to consider.
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Pensions and divorce overview
In this instalment of our Bitesize Technical series, Senior Technical Consultant, Joshua Croft guides us through the maze of rules governing how pensions are split on divorce. As pensions are a significant asset for consideration in these cases, Joshua discusses:
- the factors affecting ‘a fair split’;
- how a pension is split and transferred;
- why a court order is important; and
- the three methods of dealing with pensions in divorce cases.
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Death benefits overview
Defined contribution pensions can be a very tax-efficient way of passing money on to loved ones when the member dies.
In this short video, our Senior Technical Consultant, Lisa Webster, discusses:
- who can receive funds left in a pension;
- how death benefits are taxed; and
- if inheritance tax applies to pensions.
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Death benefit nominations
In her latest Bitesize video, our Senior Technical Consultant, Lisa Webster, explains how the rules around death benefit nominations work.
Topics covered include:
- how death benefits can be paid;
- which beneficiaries are eligible to receive death benefits;
- who is classed as a dependant and a nominee; and
- what happens when a beneficiary dies.
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Death benefits – how trustees exercise discretion
Trustees must make a ‘reasonable’ decision about who should receive any remaining pension funds following a member’s death.
Our Senior Technical Consultant, Lisa Webster, explains the factors trustees should consider when exercising their discretion, including:
- the laws they must follow;
- when trustees’ decisions can be challenged;
- how the expression of wish impacts decisions; and
- how advisers can help smooth the process.
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Inheritance tax and pensions
Our Senior Technical Consultant, Lisa Webster, looks into situations where a pension may fall within the deceased member’s estate.
In this video, she covers:
- the impact of binding nominations and contributions made when in ill-health;
- how much IHT could be payable; and
- whether all pension transfers in ill-health could be caught.
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Lump sums death benefits
What are the rules around lump sum death benefit payments from defined contribution pensions, and how are they treated for tax?
Our Senior Technical Consultant, Lisa Webster, explains the topics surrounding lump sum death benefits, including:
- key scenarios if a member dies before, on, or after their 75th birthday;
- lump sums paid to trusts; and
- offsetting special lump sum death benefits charges against income tax.
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Pension death benefits – taking income
What choices do dependants, nominees and successors have when taking benefits as a death benefit lump sum, compared to using the funds to provide a pension income?
To help you understand the different options and how they are treated for tax, our Senior Technical Consultant, Lisa Webster, outlines:
- the options for taking pension income;
- how the pension income is taxed; and
- advantages for clients taking death benefits as income.
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Small lump sums
In addition to common pension withdrawals, several other lump sums are available from registered pension schemes.
In this short video our Senior Technical Consultant, Joshua Croft, discusses:
- small pot payments;
- when trivial commutation lump sums are available; and
- winding up lump sums.
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Ill-health pension benefits
Our Senior Technical Consultant, Joshua Croft, explains when ill-health and serious ill-health can result in early access to pension benefits.
His latest Bitesize video includes information on:
- the basic requirements for ill-health retirement;
- when serious ill-health conditions are met; and
- how serious ill-health lump sums can be taken.
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Taxation of pension payments
Pension payments can sometimes be over-taxed due to the use of emergency tax codes, especially for one off withdrawals.
In this Bitesize video our Senior Technical Consultant, Joshua Croft, explains:
- how tax codes can impact pension payments; and
- how overpayments can be reclaimed.
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Scheme pensions explained
Our Senior Technical Consultant, Joshua Croft, explains the rules around scheme pensions.
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Capped drawdown
Join Senior Technical Consultant, Lisa Webster, as she outlines details around capped drawdown, including:
- the difference between capped drawdown and flexi-access drawdown;
- how to calculate the maximum income;
- timeframes in which income can be taken; and
- factors to consider if converting from capped drawdown to flexi-access drawdown.
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Uncrystallised Funds Pension Lump Sums
Uncrystallised Funds Pension Lump Sums (UFPLS) allow clients with defined contribution pensions to withdraw lump sums directly from their pension. Based on a 25% tax-free and 75% taxed as income split, Senior Technical Consultant Joshua Croft identifies key rules around UFPLS, including:
- how your clients can withdraw lump sums from their pensions with UFPLS without needing to enter income drawdown or purchase an annuity;
- limitations of the tax-free portion of UFPLS; and
- how UFPLS can offer flexibility to certain clients regarding certain withdrawal options.
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Lifetime annuities
Lifetime annuities are financial products, purchased from an insurance company, that convert retirement funds into income.
In this short video, Senior Technical Consultant Joshua Croft discusses:
- taking a tax-free PCLS before purchasing an annuity;
- whether an annuity can be used for income if the funds were already designated to drawdown;
- factors to consider, including how lifetime annuities are subject to tax; and
- what a guarantee period could mean for clients.
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Scheme pays
When an annual allowance charge arises, it may be possible for the pension scheme to pay the charge, rather than the member personally.
In this Bitesize video, Senior Technical Consultant Lisa Webster explains:
- the conditions that must be met for compulsory scheme pays;
- whether the scheme can pay the charge when the conditions aren’t met;
- who is liable for the annual; allowance charge under scheme pays; and
- how the member should report that they are using scheme pays.
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Contribution refunds
When it comes to pension contributions, the basic principle is that once the money has gone in, it can’t be withdrawn.
Our Senior Technical Consultant, Joshua Croft, identifies the very few circumstances where a contribution may be refunded.
You can expect to learn:
- conditions that must be met for contributions to be refunded;
- what an excess contribution is;
- when contributions can be refunded for a genuine error; and
- if contributions can be refunded when the annual allowance has been exceeded.
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Money purchase annual allowance
Senior Technical Consultant, Joshua Croft, explains how the Money Purchase Annual Allowance (MPAA) limits the maximum amount of pension savings your clients can make each year. He also reveals how the MPAA affects clients who have defined benefit accrual.
Watch the video now to learn more about:
- what ‘flexibly accessed’ means in relation to MPAA;
- which events do not trigger the MPAA;
- how the MPAA relates to carry forward; and
- how the annual allowance works in the year the MPAA is triggered.
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Carry forward
Carry forward enables clients to contribute more than the annual allowance, without incurring tax charges. However, there are some key factors to consider when calculating carry forward for your clients. Senior Technical Consultant, Joshua Croft, takes us through them all in the latest Bitesize Technical video.
Join Josh as he outlines:
- which clients are eligible to use carry forward;
- if there is a limit on the tax relief clients can receive on carry forward contributions; and
- how the tapered annual allowance impacts carry forward.
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Transitional arrangements
The lifetime allowance was replaced with new allowances on 6 April 2024. Watch as Senior Technical Consultant, Lisa Webster, walks you through the new regime and transitional arrangements.
Watch this Bitesize Technical to learn more about:
- the new lump sum allowance and lump sum and death benefit allowance;
- how the lifetime allowance usage impacts the two new allowances;
- if benefits that were crystallised under the old rules are tested again when a client passes; and
- when the standard transitional calculation is applied.
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Annual allowance
Senior Technical Consultant, Lisa Webster, explains the rules around the annual allowance, and the factors to consider when calculating the maximum allowable pension contributions.
Lisa explains:
- which clients the annual allowance applies to;
- what factors count towards the annual allowance;
- what happens when the annual allowance is exceeded; and
- if the annual allowance restricts tax relief.
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Tapered annual allowance
Tapered annual allowance aims to limit the amount of tax relief individuals with significant earnings can claim on their pension contributions.
Join Senior Technical Consultant, Lisa Webster, as she covers:
- how the tapered annual allowance works and applies to clients;
- the impact of the taper on the annual allowance; and
- whether clients will be able to use carry forward with the tapered annual allowance.
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Defined benefit accrual
Understand defined benefit pension arrangements in one three-minute bite, with Senior Technical Consultant, Joshua Croft.
Key topics covered in the video include:
- how the annual allowance is used in a defined benefit scheme;
- what the rules are around defined benefit accrual;
- how to calculate the annual allowance usage; and
- worked examples.
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Employer contributions
In this short video with Senior Technical Consultant Lisa Webster, you’ll learn how employer contributions are a tax-efficient way to remunerate employees.
Lisa will discuss:
- where employer contributions can be paid;
- how employers receive tax relief;
- an explanation of the ‘wholly and exclusively’ rule;
- salary sacrifice; and
- annual allowance and employer contributions.
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Third-party contributions
Senior Technical Consultant, Joshua Croft, takes us through the rules around third-party contributions in Bitesize form.
Key highlights in the video include:
- who could make a third-party contribution;
- who receives tax relief on the contribution;
- the limits on third-party contributions; and
- if third-party contributions can be made for non-earners.
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Net pay contributions
Senior Technical Consultant, Lisa Webster, delivers key worked examples on net pay as a method of providing tax relief on employee pension contributions.
Key points covered in the video include:
- which pension schemes can use net pay;
- how tax relief is given under net pay;
- advantages for higher and additional rate earners; and
- how net pay differs from salary sacrifice.
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Testing pension benefits
With the lifetime allowance abolished as of 6 April 2024, there are new rules on how benefits are tested when pensions are accessed. As a special stand-out Bitesize Technical session, Senior Technical Consultant Lisa Webster shares quick-bite information on:
- when benefits are tested in the member’s lifetime;
- how the new allowances work; and
- how death benefits are tested.
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Relief at source
Understand how relief at source works in practice as part of our Bitesize Technical series with Senior Technical Consultant, Lisa Webster.
As well as worked examples based on client scenarios, Lisa discusses:
- the tax relief the pension scheme will claim under relief at source;
- the tax relief that can be claimed by clients who pay more than 20% tax;
- whether non-taxpaying clients get tax relief on contributions; and
- how much clients can contribute and receive tax relief.
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Annual allowance, explained
Our Senior Technical Consultant, Lisa Webster, explains the rules around the annual allowance.
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Personal pension contributions
Senior Technical Consultant, Lisa Webster takes us through key points about personal pension contributions for your clients.
Key points covered in the Bitesize Technical video and article include:
- who can make personal pension contributions;
- who qualifies as a relevant UK individual;
- how much clients can contribute and still receive pension tax relief; and
- three types of relevant UK earnings.
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Flexi-access drawdown
Flexi-access drawdown was introduced after pension freedoms in April 2015 as a way to take income from a defined contribution pension with no annual limit.
In this short video, Senior Technical Consultant Lisa Webster outlines;
- what flexi-access drawdown is;
- the income flexibility it can offer clients as regular or ad hoc sums;
- how how pension commencement lump sums (PCLS) and money purchase annual allowance (MPAA) relate to flexi-access drawdown; and
- which clients are eligible
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Pension commencement lump sums
Our Senior Technical Consultant, Lisa Webster, identifies the rules around PCLS, including;
- when PCLS is typically taken by clients in wrapper schemes, annuities, and defined benefit schemes;
- what the maximum PCLS is in worked examples;
- limitations to PCLS based on clients' lump sum allowances; and
- timeframes that PCLS must be paid within
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Pension benefits overview
There are several key factors and restrictions to consider when organising how clients take pension benefits.
Our Senior Technical Consultant, Lisa Webster, outlines:
- lump sum withdrawal options, and the difference between pension commencement lump sums and uncrystallised funds pension lump sums;
- income options, such as flexi-access drawdown, lifetime annuity and defined benefit schemes; and
- other pension payments to consider
Upcoming CPD events
Connect 2025 Winter
Webinar
11 December 2025
Our Connect sessions are designed to help paraplanners and adviser support staff expand their technical pensions and investment knowledge.
On the Road spring tour 2026
Various
12 - 15 January
We are back out ‘On the Road’ for our in-person tour, visiting four cities across the UK.
Luminary 2026
Various
TBC
Luminary promotes diversity within financial services and creates a learning network for like-minded professionals.
Stay up to date with our events
Online and in-person
Various
We host a variety of events throughout the year aimed at advisers, paraplanners and adviser support staff. Check out our full calendar of engaging, informative sessions today.
Meet our Technical team
Joshua Croft
Senior Technical Consultant
Josh studied Business Studies at the University of Lincoln before beginning to work in financial services, initially in defined benefit pension fund management and more recently in corporate workplace pensions and benefits. He joined the AJ Bell Technical Team in 2019, providing technical support to various teams, and is also involved in delivering technical training to staff.
Lisa Webster
Senior Technical Consultant
Lisa is an Economics graduate who has been in the financial services industry since 2003. Prior to joining AJ Bell in 2014 she spent nine years working in senior technical and consultancy roles at a major SIPP and SSAS provider. Lisa is part of our Technical Team, responsible for providing regulatory and technical analysis to the business and outside world. She is also a regular speaker at adviser events.
Tech Tuesday updates, direct from our Technical Team
Receive the monthly technical roundup, curated by our industry-renowned Technical Team, to help you stay on top of the regulatory and legislative subjects that matter.