The Finance Act 2006 stops an individual investing a tax-free lump sum back into a registered pension scheme, automatically generating further tax relief on the amount reinvested.
This is known as 'recycling lump sums'.
If this happens, your Pension Commencement Lump Sum (PCLS) is treated as an unauthorised payment.
This means you'll be liable for a tax charge of up to 55%.
If you recycle your PCLM, you must write in to us.