Extending the reduction in minimum pension drawdowns

Extends now into the 2023 income year

The Government previously temporarily reduced the minimum required rates for withdrawals from pension accounts by 50% for the 2020, 2021, and 2022 income years.

These regulations extend this measure to cover the 2023 income year as well.

For example, a taxpayer aged 67 with an account-based pension would ordinarily be required to make a withdrawal of a minimum of 5% of their account balance in the income year. For 2020-2023 this has been reduced by 50% (i.e., to 2.5%).