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Is pension compensation taxable?
Ken24
Posts: 2 Newbie
Hi, 1st post so please be gentle.
I have just been offered a lump sum of £70000 as compensation from my mis sold pension. My question is 'Is it taxable?'. I am a 40% tax payer. The pension was transfered over in 1996.
Thanks in advance. Ken.
I have just been offered a lump sum of £70000 as compensation from my mis sold pension. My question is 'Is it taxable?'. I am a 40% tax payer. The pension was transfered over in 1996.
Thanks in advance. Ken.
0
Comments
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Is it an additional compensation payable to you? Or is it the shortfall due to mis-selling that needs to be invested in your current pensions scheme?0
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It is a lump sum, payable to me, not into my pension.0
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http://www.hmrc.gov.uk/manuals/saimmanual/saim2340.htm
But I think if you say put the lump sum in a cash account, then interests incurred would be subject to tax.0
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