How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3825
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

HiCan you tell me if under the budget legislation yesterday

Customer Question

Hi
Can you tell me if under the budget legislation yesterday I will be able to withdraw all the funds from my SIPP which currently stands at £14000. I am at present 65 years old and I have allready taken the present 25% max lump sum prior to my retirement at 60. I am receiveing an annual payment from the sipp of approx £800 at present but would like to know if ican withdraw the full amount as a cash payment. If this is possible will the withdrawn sum of £14000 count as income (I know I will need to pay income tax) or savings against housing and social benefits ?

Also I have a small Post office pension paid monthly. would I also be in a position under new pension rules to withdraw this as a lump sum?
Thank You

Graham Tiltman
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello Graham, I'm Keith and happy to help you with your question.

Informed sources say that from 27 March total pensions of up to GBP 30K may be taken entirely in cash.

Whether The PO pension trustees will allow you to withdraw your pot is up to them; you will have to seek their approval. However, you should be aware that pension pots aggregate so both will be taken into account.
Customer: replied 3 years ago.

Thank you for your reply,however you have not dealt with the issue of the effect of the withdrawal if successful on benefits as I requested ?


Please advise if possible thank you


Graham

Expert:  bigduckontax replied 3 years ago.
It is income so may well impinge on tax credits. As it stands it will severely affect them. You are advised to consult the Tax Credit Helpline in such situations as their published guidance is deficient.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support. I am sure you appreciate that the Finance Bill is still in its infancy and much may change before it becomes law, but in the interim many effects apply almost immediately.

Related Tax Questions