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Pension Lta again

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In Feb 2011 I was forced to take a lump sum because my pension provider wound up the fund and paid tax on this sum. I still have 2 small pension funds that I was hoping to trivialize and take cash but all together they will add up to more than the 1% of this years Lta (£15000). Am I correct in thinking if I take cash I will end up paying 55% tax.:(

Comments

  • mania112
    mania112 Posts: 1,981 Forumite
    Part of the Furniture Combo Breaker
    You are not eligible to 'cash in' your pension under triviality rules because the total of ALL your pensions must be under £18,000 - which does not seem to be the case in your situation.
  • mania112
    mania112 Posts: 1,981 Forumite
    Part of the Furniture Combo Breaker
    and that includes the pension(s) you already have in payment.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    And the triviality sum is no longer 1% of LTA but fixed at £18k.

    Maybe small pots could be taken under the stranded pots rule?
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • mania112
    mania112 Posts: 1,981 Forumite
    Part of the Furniture Combo Breaker
    ^ Yeah, if there's one (or more) under £2k.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    For "one or more" read "two or fewer", but the £2k is spot on.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • GhIFA
    GhIFA Posts: 619 Forumite
    gadgetmind wrote: »
    For "one or more" read "two or fewer", but the £2k is spot on.

    And you have to be at least 60 years old.
    I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.
  • mania112
    mania112 Posts: 1,981 Forumite
    Part of the Furniture Combo Breaker
    I stand corrected.

    In order to take advantage of this the scheme rules must allow it and the following

    conditions must be met:

    • member has attained age 60

    • the funds in the personal pension arrangement must not exceed £2,000

    • the payment extinguishes the member’s entitlement under the arrangement

    • only 2 such commutations are possible in a member’s lifetime.
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