Late Dads Pension

KeepSmiling_2

Not sure if this in the right place but the question is income tax related. My father died in Sept 05, I'm his only daughter and he had no wife. I was granted Probate with a letter of administration and orgainised the payout of one pension which cleared any outstanding debts he had left. I have recently had a letter from a company that he had a pension with, which i had found no paperwork for and therefore not dealt with. I contacted them via phone to organise the forms to be sent out for me to return. The lady explained because nearly 2 years have passed since my Dads death I will need to pay income tax on the amount which could be up to 40%, she did say she didn't think it would be that high but as it wasn't her field she wasn't sure.
Can anyone explain what this is and what I would need to do, I've searched everywhere but can only find info on inheritance tax.

noh

She is probably refering to tax that will need to be paid on the interest and income earned by the pension since the date of death. They will deduct this before paying you.

Nigel

KeepSmiling_2

Thanks for you reply. Is it correct that it could be up to 40%?

noh

KeepSmiling wrote: »

Thanks for you reply. Is it correct that it could be up to 40%?

Unlikely. I suspect that they will deduct tax at 20% on all interest earned from the date of your fathers death when the pension would have ceased and therefore the fund lost its tax free status. Its nothing to worry about and is normal practice.

Nigel

dunstonh

Is it correct that it could be up to 40%?

Potentially. However, the income would have to be in that band to apply.

KeepSmiling_2

Thankyou Both.