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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
As a recipient of one such pension I am happy to be able to confirm that your pension coming into issue with its lump sums etc is not a taxable event. Under the new rules, of course, if you then decide to liberate your pension then the sum liberated will be 25% tax free and the balance taxed at your marginal rate of tax, assuming that you are over 55 years of age.
I do hope that I have been able to set your mind at rest on this matter.
Your lump sum is not a taxable emolument.
If you dip into your pot post retirement then 25% is tax free and 75% taxed at your marginal rate of tax.
You might be better off under the Student Finance rules if savings are taken into account in the computation. You should check that they are correctly applying the computation formula, which may well not include savings..
Thank you for your support.