a day with a pot < 15k

ard123en

ok I may be reading this wrong

but from reading the rules anyone can have more than 1 pension

if a pension is worth less than 15k you can withdraw the lot

so what is to stop someone with a pension already

setting up a "new pension" at 54 years 11 months old

with say 10k geting gordon the add tax back at 22% making it 12.2 k

then cashing it back in on their 55th birthday?

EdInvestor

Two things:

Your total pension provision (other than the state pensions) must be no more than 15k

and

You have to be aged 60 to take a trivial pension in cash.

Sorry.

ard123en

thanks its the word total that i was missing

ok feel silly now

EdInvestor

No need to feel silly. There's a large throng of very smart people earning stacks of money daily thinking up ways of beating the taxman. You could almost call it a national sport

Chrismaths

I saw a scheme that involved VCTs and SIPPs and meant you built up a £150,000 pension fund for a cost of about £5k. But you had to earn at least £100k to make it work... wonderful how the rich can avoid tax, the poor live off benefits and everyone else in the middle gets royally sh*gged by this Government...

Pobby

So I guess,when you cash in a trivial pension you can take 25% tax free and pay tax on the remainder?