• The tax-free cash recycling rules aim to stop tax-free cash being used to significantly, and purposely, increase pension savings to gain the associated tax advantages 
• Any extra pension payments must be as a result of taking the tax-free cash. This can be directly paying tax-free cash back into a pension, or indirectly where the cash 'frees up' other money to boost pension savings
• The recycling rules can apply even if the increase happens before the tax-free cash is received
• Where there’s no pre-planning, the recycling rules don’t apply
• It’s not just the individual’s own payments that are considered - employer and third party payments count too

This decision tree can be used to highlight where individuals could be seen to be recycling their tax-free cash. 

Assumptions and limitations – The decision tree outcomes are based on a number of assumptions and are only illustrative. Aberdeen does not accept any responsibility for any loss caused by reliance on this decision tree. This does not constitute financial or other professional advice from Aberdeen. If you require tax or other professional advice you should consult a suitability qualified professional.