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The taxpayer asks whether they can transfer half of their pension plan to a new one to redeem each in a different tax year and apply the 40% reduction to both. The DGT indicates that the reduction may be applied to benefits from different plans in different tax years, but warns that if the transfer is carried out solely for tax savings purposes, it could be considered a simulation or a conflict in the application of the rule.
The tax team reviews your specific situation.
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