Quarter of advisers call for removal of 'emergency tax' on drawdown - abrdn

'Disappointment for many clients'

Julia Bahr
clock • 3 min read

Removing emergency tax on income drawdown payments is one of the leading tax and pension planning simplifications that advisers feel would be most useful to them and their clients, according to recent research from abrdn.

More than a quarter (26%) of respondents to abrdn's bi-annual survey of 190 UK financial advisers said removing the tax would top their wish list of potential changes, over removing elements such as the tapered annual allowance and the money purchase annual allowance. Overall, the majority of advisers (59%) listed removing emergency tax within their top three priorities. Single or ad-hoc pension payments, or initial payments of regular pension income, are normally taxed on the ‘emergency month one basis'. This basis ignores a client's existing income tax position to date and uses a blank...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Farming families must be proactive on advice ahead of APR/BPR change

Farming families must be proactive on advice ahead of APR/BPR change

‘The difficult conversations need to happen now’

Sahar Nazir
clock 03 April 2025 • 6 min read
Business' tax year planning – a reminder on carry forward

Business' tax year planning – a reminder on carry forward

'The carry forward rules can be difficult to navigate'

Caitlin Southall
clock 31 March 2025 • 4 min read
Tax year-end/tax year-start: Unfounded fears and enormous upside

Tax year-end/tax year-start: Unfounded fears and enormous upside

'Clients are tuned in to tax efficiency'

Phillip Wickenden
clock 27 March 2025 • 5 min read