Help with the Pru

topmum

My FIL has an annuity with the Prudential and it appears that they have been taxing him at 22%. He receives £200 a monthe from it before tax and his only other income is his state pension. So I think he really shouldnt be paying tax. He is 82 and it is causing him a lot of stress so I have been phoning Pru all morning for him but had no joy from them. They are based in Mumbai and say I cannot speak to anyone in the UK :mad:

2 questions really:

1. should he be paying tax?
2. does anyone know anywhere I can phone in the UK to the Pru for some advice?

Thanks

dunstonh

You could go back to the original IFA that sold the annuity (assuming one was used). IFAs have access to annuity centre in craigforth and dont deal with a call centre.

That said, someone in their overseas department should be able to help. Although I think your query is best placed with the HMRC rather than Pru. Pru will not give advice on tax positions.

Should he be paying tax? Possibly. What is his state pension income?

topmum

Hi - thanks for your reply. HMRC is my next port of call. His state pension is £86 a week.

Thanks

Topmum

dunstonh

as he is that close to the minimum state pension, he shouldnt be paying tax on any of it as he can earn £7420 a year with no tax deducted.

However, if he has savings accounts, the interest on those is classed as income for tax purposes and they could take him a taxable position.

EdInvestor

Many people don't realise that the state pension is part of your taxable income.