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AVCs

Grateful for some advice please.
While I was in the Civil Service I started paying into AVCs with Scottish Widows. I left the CS in 1987 and joined the NHS.

I transferred my CS main pension into the NHS but the AVCs were frozen and mature this year when I will be 60. (my current retirement age in the NHS is now 65).

The value of the AVCs are about £20K and I'm not sure what my options are. (I would like to give it to my wife who is self employed and only has a small pension pot also of about £20K but I don't think this is allowed).

If I defer doing anything until April 2015 can I take it all out? or am I restricted as I paid in while a member of the CS scheme at the time?

Many thanks.

Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I suspect that the answer is "it's not yet known". Legislation will have to be drafted and accepted by parliament before anyone can be sure. I suspect that Osborne's instinct would be to liberate AVCs if it's practical.
    Free the dunston one next time too.
  • OldBeanz
    OldBeanz Posts: 1,438 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The plan is that you will be able to take this money out from April 2015. You will get 25% tax free and the rest will be taxed at your marginal rate.
    Your wife can pay into a pension - all her income limited to £50k this year and £40k from 5/4/14 or £3600 if she has no income.
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