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silly question time
scaredlady
Posts: 132 Forumite
For various reasons I left work somewhat earlier than what I thought I would. I am going to get a years salary in lieu (under £30K) a pension lump sum -that with the years salary comes to over £40k, plus a monthly pension. My question is as I will be getting the years salary shortly and the pension lump sum after that, am I going to get hammered tax wise.I have tried looking this up myself but am somewhat confused ....Or are both payments tax free??
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Comments
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"to get a years salary in lieu " - PILON? See http://www.hmrc.gov.uk/manuals/eimanual/eim12975.htm
http://www.direct.gov.uk/en/Pensionsandretirementplanning/Companyandpersonalpensions/PersonalPensions/DG_10027141 - re lump sum.0 -
the pension lump sum will be tax free. whether the 'year's salary in lieu' is taxable or tax free depends on whether it was redundancy - if so it'll be tax free (anything under £30k), but probably taxable if it's just a golden handshake.:beer:0
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