Ill Health Retirement & tax

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
4 replies 934 views
50Twuncle50Twuncle Forumite
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I have applied for Ill Health Retirement from my Public Service employers - I am 47 years old
The lump sum should be around £30k - Could someone please confirm that the first £30k is tax free and doesn't eat in to a "normal" tax allowance ?
ie) On top of the £30k - I would also be allowed £6475 before any tax is due......

Replies

  • Hi 21Twinkle,

    If you are taking your pension benefits early on the grounds of ill-health, then all of your lump sum is tax free no matter how much it is.

    Mike

    I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.
  • 50Twuncle50Twuncle Forumite
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    MikeJones wrote: »
    Hi 21Twinkle,

    If you are taking your pension benefits early on the grounds of ill-health, then all of your lump sum is tax free no matter how much it is.

    Mike

    I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

    Thanks - any chance of a link for this important fact ?
  • edited 27 August 2010 at 5:33PM
    50Twuncle50Twuncle Forumite
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    edited 27 August 2010 at 5:33PM
    I guess not - is it genuine or not ?
    I can't see the government, missing out on this one
    "ANY" amount being free of income tax - for Ill Health Retirement ?
  • CLAPTONCLAPTON Forumite
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    lump sums from pension funds are tax free

    lump sums from redundancy : only the first 30k is tax free
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