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Redundancy payment & 40% tax
sharpecat
Posts: 4 Newbie
in Cutting tax
My husband is shortly to be made redundant and part of his redundancy payment £18k falls into the 40% tax bracket. He does not intend to work anymore (aged 52.5 years) and intends to draw his occupational pension at 55.
To try to claw the tax back. Is it a good idea to place £10.8k (+ tax back) in a sipp giving a total of £13k and drawdown at 55?
Or are there other options he could consider. Any help will be gratefully recieved.
To try to claw the tax back. Is it a good idea to place £10.8k (+ tax back) in a sipp giving a total of £13k and drawdown at 55?
Or are there other options he could consider. Any help will be gratefully recieved.
0
Comments
-
When is the payment due,
If he can get it in the next tax year that might work unless it is a massive payment(£75k+).0 -
Yes he is taking it in the new tax year, he has worked for his employer for 33 years0
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