As announced in the Autumn Statement 2011, the government will extend the existing pensions tax commutation rules to allow individuals aged 60 or over to commute funds of £2,000 or less held in personal pensions into a lump sum regardless of their other pension savings, subject to a maximum of two such commutations in a lifetime.†

Draft legislation was published for consultation on 6 December 2011 and the final legislation will take effect from 6 April 2012.

Read more news stories from the 2012 Budget Report