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Non-taxable annuity?
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Star_Reader
Posts: 1 Newbie
I am in receipt of a small annual pension annuity which arose from a pension policy set up as a means of redress after a pension review by the provider.
Should all of the payments be treated as non-taxable as well as the original 25% lump sum payment?
Should all of the payments be treated as non-taxable as well as the original 25% lump sum payment?
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No, the 25% lump sum you refer to is tax-free, but the remainder fund is taxable as earned income. This small payment is therefore added to all your other sources of income. You do have your personal allowance of £10,000 though.Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.
Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.0
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