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Tax on critical illness payout?
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Dodgy_tooth
Posts: 1 Newbie
in Cutting tax
Due to very bad health I've just been told that I qualify for a payout from critical illness cover that I took out with my mortgage several years ago, and have been paying into ever since. My remaining mortgage debt will be cleared, and I'm due to get a £33k lump sum. Does anyone know if I will have to pay tax on this?
I am also very worried about being forced to retire early (late 40s) due to ill health. If that happened and I got incapacity pension (est £22k) and lump sum of two or three times that, would these also be taxed?
Please forgive my financial ignorance, and thanks for any advice. This is keeping me awake at night!
I am also very worried about being forced to retire early (late 40s) due to ill health. If that happened and I got incapacity pension (est £22k) and lump sum of two or three times that, would these also be taxed?
Please forgive my financial ignorance, and thanks for any advice. This is keeping me awake at night!
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Don't pay tax on insurance payouts0
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