With the introduction of ‘flexible drawdown’ with effect from 6 April 2011, a new measure was introduced to prevent the avoidance of tax. Because a scheme established within another state in the European Economic Area may apply for registration, it would be possible for a UK-resident member of such a scheme to become non-resident, receive substantial flexible drawdown payments during the period of non-residence and then take up residence again. During that period of non-residence, no UK tax would be due because the pension would be from a non-UK source.

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