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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 9276
Experience:  FCCA FCMA CGMA ACIS
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I am 77 only have state pension + my late husband's small

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I am 77 only have state pension + my late husband's small works pension. My husband died 15 years ago leaving some money in Scottish Widows investment bond, which is now Halifax. I have received small payouts over the years. Value having dropped recently there is now £11,298.92 in account (recent statement). At a stage when I may have to do some forward planning having become slightly disabled. To stay in my own home I would have to make some changes (walk-in shower, etc.) Approximately how much tax would I have to pay if I closed this account to use money to make necessary changes?
JA: Are there other sources of income (wages, interest, dividends, etc.)?
Customer: state pension in my own right, my late husband's works pension and some money in an ISA A
JA: Anything else you want the Accountant to know before I connect you?
Customer: sorry, hope you got my pensions information as my computer connection is very slow this afternoon.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Unfortunately, Scottish Widows, who were one of the top insurers before they became entangled with the Halifax, have now become a somewhat opaque organisation. However,you can withdraw 5% annually without any tax penalty, will that assist you?

Customer: replied 10 days ago.
thank you. It gives me something to base my forward planning on. Reluctant to leave money invested with them as I would not have done through choice. I know money markets, like everything else have been hit over the past 10 years but they seem to have lost quite a chunk.

Delighted to have been of assistance. Please be so kind as to rate me before you leave the Just Answer site.

Scottish Widows was one of the few insurance companies my then conservative insurance broker would touch in the mid 60s; Equity and Law was another. I see that a couple of E&L policies I still have are now in the clutches of what was the Norwich Union, an organisation I would not normally touch with a barge pole.

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