Small Pensions Funds
By small pension funds we mean funds less than 1% of the lifetime allowance. The lifetime allowance is currently £1.5m so funds less than £15,000 can be commuted for cash.
In effect 25% of the fund is taken as tax free cash and the remainder is paid less tax. The total of all of your pension funds must be below this amount to qualify. The claimant also needs to be aged 60 or over.