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: 3829
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Hi there , i am taking my pension on 1st April from Mitchell

Customer Question

Hi there , i am taking my pension on 1st April from XXXXX XXXXX , should be 21000 lump sum and 6970 for 10 years levelling after that , does the budget affect this
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello, I'm Keith and happy to help you with your question.

 

No, you can still take 25% from your pot tax free. The main changes are the ability to take much more from your pension pot rather along the USA model. From 27 March 2014 if your pot is below 30K you can draw the lot in cash. If over 30K then you can draw three pensions of 10K each. Savers who use 'income drawdown' are allowed to take larger sums as income, likely to be worth several thousands a year from each 100K of pot. From April 2015 you will be able to draw the whole pot in cash subject to income tax at your marginal rate. The requirement to buy an annuity is abolished. Not all the rules are yet published

 

Of course, you can still take your 25% and buy an annuity or just keep going as one normally did before the Budget changes. If you are in a occupational pension scheme your possibilities may be limited depending on the line your pension fund trustees take.

Related Tax Questions