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    • cyclonebri1
    • By cyclonebri1 20th Mar 17, 8:30 AM
    • 12,523Posts
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    cyclonebri1
    Triviality rules query
    • #1
    • 20th Mar 17, 8:30 AM
    Triviality rules query 20th Mar 17 at 8:30 AM
    My wife is approaching retirement has a small private company money purchase pension, very small.

    She will be eligible under the triviality rules as I was always the pension supplier for us as a couple and her arrangements are well under the totals that would prevent either form of triviality.

    Given we are only talking about a scheme that she and the company have paid into for about 4/5 years and the total fund will be around £7k is the companies contribution part of the pot when the calculations are done or are their contributions refunded?

    Also what's the tax situation?
    I like the thanks button, but ,please, an I agree button.

    Will the grammar and spelling police respect I do make grammatical errors, and have carp spelling, no need to remind me.

    Always expect the unexpectedand then you won't be dissapointed
Page 1
    • xylophone
    • By xylophone 20th Mar 17, 3:53 PM
    • 22,881 Posts
    • 13,244 Thanks
    xylophone
    • #2
    • 20th Mar 17, 3:53 PM
    • #2
    • 20th Mar 17, 3:53 PM
    Your wife has a money purchase pension to which she and her company have contributed.

    The value of the pot is the sum of the contributions plus tax relief plus investment performance. You indicate this is around £7000 in total.

    She wishes to take the whole of the pot.

    This would be 25% tax free with the balance taxed as income in the tax year of withdrawal.

    It may be that the tax deducted on withdrawal is more than your wife should pay - if so, she can apply to HMRC for repayment.

    http://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/
    • cyclonebri1
    • By cyclonebri1 21st Mar 17, 2:29 PM
    • 12,523 Posts
    • 5,171 Thanks
    cyclonebri1
    • #3
    • 21st Mar 17, 2:29 PM
    • #3
    • 21st Mar 17, 2:29 PM
    Your wife has a money purchase pension to which she and her company have contributed.

    The value of the pot is the sum of the contributions plus tax relief plus investment performance. You indicate this is around £7000 in total.

    She wishes to take the whole of the pot.

    This would be 25% tax free with the balance taxed as income in the tax year of withdrawal.

    It may be that the tax deducted on withdrawal is more than your wife should pay - if so, she can apply to HMRC for repayment.

    http://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/
    Originally posted by xylophone
    Thanks, superb reply, just thought the company could/would withdraw contributions under existing law if they were legally entitled to

    Sounds like we need to leave it until the next tax year, thanks do much
    Last edited by cyclonebri1; 21-03-2017 at 2:32 PM.
    I like the thanks button, but ,please, an I agree button.

    Will the grammar and spelling police respect I do make grammatical errors, and have carp spelling, no need to remind me.

    Always expect the unexpectedand then you won't be dissapointed
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