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Sam, Accountant
Category: Tax
Satisfied Customers: 14165
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I was diagnosed with Parkinsons disease 11 years ago.

Customer Question

I was diagnosed with Parkinsons disease 11 years ago . Dispite the aches and pains of this illness I held down a responsible job as a Director until June last year when the company decided that I could no longer carry out the job that I was employed to do . I took early retirement and my position was made redundent . My redundency payment and holiday pay are now exhausted and I only get £ 573.00 a month on DWPEES benefits . I have an AXA pension pot of £ 88000 at my disposal and a mortgage of £ 86000 . Are there any schemes whereby as I have a long term disability I can get tax exemption and pay off my mortgage
Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.


Thanks for your question

Unless any insurance you hold allows you access to your pension, or the terms under ill health (if there are any) then anything you take from your pension pot before the eligible time will see full taxation on a down draw and I am afraid there are no schemes to assist you.

If you are 55 then 25% of the pot can be taken tax free and any additional amounts liable to tax, and this applies whether you take it as a lump sum or a monthly payment ,the only difference is you will see more of the pension in your possession over time if you take the pension advisers advsie and take it as monthly payment.

Are you not eligible for Disability Living Allowance (soon to be called and fall as PIP) this is NOT means tested and not liable to tax.

Link here for further information regarding this - this could be worth making a claim if you need assistance with your care, or limitations

Do let know if I can assist further