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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5029
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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my pension company say they will tax the money I draw down

Resolved Question:

my pension company say they will tax the money I draw down 40%. I only have 14,000.00 in the fund and I do not work or have any other income.
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise -
Have you taken any monies out of the pension fund in the past?
Are you at present drawing a pension?

Many thanks
Customer: replied 2 years ago.

I have not taken any monies previously. I do not have any other pension or income and I am supported by my husband

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your prompt reply...

If you have not taken any monies out of your pension fund before, then up to 25% of pension fund as a lump sum payment would be tax free and the balance would be taxable as normal income in the year in which it is paid.

You should refer this to your pension company.

More information on this can be found here

http://www.litrg.org.uk/tax-guides/pensioners-tax/how-do-i-cash-in-my-small-pension-trivial-commutation


I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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