lump sum payments and tax

helen0

my mother is due to retire this month and has paid into a private pension (which has been frozen for past 5 years as she finished work due to serious ill health) she was given the option of taking it at £14 per week or a lump sum which after seeking advice decided to take a lump sum as she was told that this up to £15k could be taken tax free and this would rise to 18K in april this year. However, it would now seem that it would be taxed reducing the amount quite a bit, however she seems to be having difficulty in getting a definite answer on this one, she is a non tax payer, can anyone offer any advice.
many thanks
H

dunstonh

The first 25% is tax free but the rest is taxed as income. As it would take her over her personal allowance, she would be part taxed on it if there is no other income.

It has to be under 1% of the lifetime allowance for all pensions that have existed.

helen0

Thank you