pension wind-up

molerat

xylophone wrote: »

http://www.hmrc.gov.uk/pensionschemes/tax-basics.htm#10

"Trivial and winding up lump sums
If your pension pot is small the whole amount may be paid to you as a lump sum. This type of lump sum is often called a trivial lump sum - more in the link below.
You may also have a pension pot of up to £18,000 paid to you as a lump sum if both the following apply:
your workplace pension scheme is winding up
your employer isn't paying into another pension scheme for you
These lump sums are taxable. How much tax you'll pay depends on your overall taxable income after your tax-free allowances. Your pension scheme administrator will take off tax using the PAYE (Pay As You Earn) System."

The OP might be required to pay more than 20% Tax, depending on his personal situation?

Nice how HMRC have the old and new running together http://www.hmrc.gov.uk/manuals/rpsmmanual/rpsm09105150.htm

Before 6 April 2013, where the member’s pension had not yet been paid and the scheme did not have a PAYE code for the recipient an emergency code applied. From 6 April 2013 onwards, the basic rate (BR) code should be applied in such cases

There may be more tax or a refund due but the scheme will only tax at BR.