BUSINESS people retiring early from East Lancashire firms are being warned of a potential tax pitfall.
The Inland Revenue has decided that people who stay on as unpaid directors of firms after retiring are still providing a service.
That means the normal tax free lump sum element of a pension becomes taxable.
"The Inland Revenue is now applying the strict letter of their own rules for the first time," said Leslie Bury of Blackburn-based Kidsons Impey.
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