The difficulty is that my NHS Pension is valued at approx. 23 x £39000 (definitive figures not yet supplied by NHS Pension) i.e c. £900,000. Current value of private funds £290k. These are not yet in drawdown and probably will not be for at least a couple of years by which time I should be over the current £1.2m but not the old £1.5m allowance. To pay 40% of value over £1.2m is potentially very expensive.
NHS Pension suggestion was to deduct the arrears from my lump sum but that looks very like a payment in 2014 to me. I know I can submit a case to HMRC that the payment belongs in 2011/2 (likely triggering a payout by them as it is tax deductible) but given that I need to make a decision very shortly and getting an agreement from HMRC likey takes months, what confidence can i have that the decision goes my way?
Thanks Keith. I am not sure I am a lot further forward but thanks for taking the time to think about it. I was hoping there might be case law that would give a clear indication of what should happen: if two of us have found out after the event that payments have been in error, the chances are high that this is not a unique problem. I have it in the back of my mind that I saw a legal ruling not long ago that said a defendant could not be held liable for change in tax liability only for the original payment due but I am not a lawyer and sadly have reached an age where my brain sometimes fills in gaps it thinks shouldn't be there, not necessarily correctly. Thanks again