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tax free lump sum

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paco2
paco2 Posts: 8 Forumite
in Pensions, annuities & retirement planning
Does anybody know of plans by the govenment to tax the pension lump sum? I heard something about it would be taxed after £40k and this comes into effect 1st April 2011.
paco2

Comments

  • Emmamumof2
    Emmamumof2 Posts: 1,179 Forumite
    It hasnt been confirmed either way yet but is a possibility, Gov is consulting on its pension proposals at present!

    http://news.bbc.co.uk/1/hi/business/8543505.stm
  • dunstonh
    dunstonh Posts: 119,646 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Does anybody know of plans by the govenment to tax the pension lump sum?
    No.
    I heard something about it would be taxed after £40k and this comes into effect 1st April 2011.
    There are no plans, rumours, hints or suggestions that the pension commencement lump sum (PCLS) is going to be changed. There are changes coming but none of them relate to the PCLS. The changes relate to more options in retirement (to reflect people living longer) and contribution restrictions to reduce the benefit to higher earners.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Cook_County
    Cook_County Posts: 3,092 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    £40,000 is in the range of possible maximum tax deductible contributions - subject to government consultations.
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