HMRC have worked out how to move the minimum pension age from 55 to 57 in 2028

Posted on August 11, 2026 by henry tapper

 

This is timely. Thanks Christopher.

 

 

You can download the PDF produced by HMRC from here. Press the dark grey ribbon at the bottom to get read here. You can download it using this link

About henry tapper

Founder of the Pension PlayPen,, partner of Stella, father of Olly . I am the Pension Plowman
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1 Response to HMRC have worked out how to move the minimum pension age from 55 to 57 in 2028

  1. John Mather says:
    August 11, 2026 at 7.32

    A note for those who plan with individuals; by that I mean real people not failing everyone apart from Mr Average.

    It seems that rather than encourage the greater use of pensions to deal with income beyond work either in your own “pot” or in a collective big “pot”. This has encouraged taking benefits earlier than intended (especially in the next 9 weeks) with the objective of making gifts under the normal expenditure regime. Suffering one tax charge (45%) on the family savings is an improvement on 67%. Is this 1984 exemption to be closed down in the budget?

    Just to summarise what “normal” means

    Three Conditions for Exemption

    To qualify for the Normal Expenditure Out of Income exemption, a gift/disposal must satisfy three criteria:

    1 It formed part of the transferor’s normal expenditure.

    2) It was made out of income (taking one year with another).

    3) It left the transferor with enough remaining income to maintain their normal standard of living.

    Key Factors in Determining “Normal”

    Subjective Standard: “Normal” means typical or habitual for the specific transferor, not for the average person.

    HMRC Assessment Criteria: HMRC considers frequency, amount, nature of the gifts, identity of the recipients, and the underlying reasons for making the gift.

    Documentation:

    Documentary evidence of intent and record-keeping is critical.

    Patterns of Giving & One-Off Gifts

    Time Span for a Pattern: There is no strict legal timeframe, but HMRC typically considers 3 to 4 years sufficient to establish a pattern of regular giving.

    One-Off / Single Gifts: A single gift can qualify if there is clear evidence it was intended to be the first in a regular pattern.

    Example: Paying the first premium on a whole-of-life insurance policy shortly before dying.

    Gifts Near Death: If a single gift is made close to death, HMRC requires strong proof of a genuine intent and realistic expectation to continue making further payments.

    Gift Amounts & Variations

    Size Comparability: Gifts should generally be comparable in size.

    Acceptable Variations: HMRC allows variances in gift amounts if they are tied to:

    Variable Income: e.g., fluctuating annual share dividends.

    Specific Costs: e.g., grand-children’s school fees that increase over time.

    Reply

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