New pension rules unlikely to impact market
In April of this year, new pension rules come into effect in the UK which will allow more flexibility in fund withdrawals. Recent headlines had suggested that these changes could result in a flood of pensioners investing in the buy-to-let market. Financial experts however don’t expect this to be the case, as any withdrawals greater than the current 25% limit will be taxed. A pension fund large enough to finance a property is likely to be in the higher-rate tax bracket of 40%, and possibly as much as 45%.
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