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unearned income
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# 1
Old 03-09-2009, 9:43 AM
MoneySaving Newbie
Join Date: Mar 2009
Posts: 13
Default unearned income

Are the 25% tax free lump sum from a personal pension and a deffered state pension lump sum classed as unearned income by the Tax Office and thereby taxable?
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# 2
Old 03-09-2009, 12:32 PM
MoneySaving Convert
Join Date: Dec 2005
Posts: 182

a tax free lump sum is tax free...

a pension payment (income) is income if you take it now, or later, and taxable (unless the rules, or your tax threshold changes).
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# 3
Old 03-09-2009, 9:58 PM
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Join Date: Dec 2008
Posts: 833

THe clue is in the name "tax free"
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