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 TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I am 61 and already taking a pension & paying tax on, I am

Resolved Question:

I am 61 and already taking a pension & paying tax on, I am also working with a pot of £140,000 can I take that all out tax free when I retire next year.
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

Can you tell me how much your existing pension is before tax annually and whether you also took a cash lump sum please. Is the £140,000 in a work place pension scheme?
Customer: replied 3 years ago.
Hi, I get a pension of £31.500 per year, which is taxed at source, I did take £94,000 in a lump sum, the £140,000 is a work pension that belongs to me if I leave at anytime. There
Fore it is best if I could take the lump sum if the tax was the best option.

Thanks
Expert:  TonyTax replied 3 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 3 years ago.

Hi again.

You may be able to access your £140,000 pension pot from April 2015 if the proposed changes around pensions legislation are enacted. It depends whether you are in a "defined contribution" or a "defined benefit" pension scheme. Holders of "defined contribution" pension funds will be able to withdraw all the cash, subject to tax.

If you are in a defined contribution pension scheme, you should be able to take 25% tax free and if you took the balance all at once, you would pay some tax at 40% as your income for 2015/16 will be something life £140,000 (£35,000 + £105,000 (£140,000 - 35,000 tax free lump sum).

You should consult your pension fund managers to determine what your optiions are as far as your fund is concerned.

I hope this helps but let me know if you have any further questions.

Expert:  TonyTax replied 3 years ago.
I just noticed a typing error.

If you can take the £140,000 as cash, then your income for 2015/16 will be £136,500 (£31,500 + £105,000 (£140,000 - £35,000 tax free cash).
TonyTax and other Tax Specialists are ready to help you

Related Tax Questions