Lump sum taxable?

xylophone

So in the scenario where she's getting £139p/w state pension and thus releases the lump, how is her liability calculated?

Have you read the links in my post above?

Zudecke_2

xylophone wrote: »

Have you read the links in my post above?

I did, thank you so much.

Unfortunately it was just as cloudy for me as the official pensions pamphlet that we have. That theoretical scenario is still unclear to me... (go easy) :rotfl:

kidmugsy

Zudecke wrote: »

So in the scenario where she's getting £139p/w state pension and thus releases the lump, how is her liability calculated?

(assuming, again, no other income whatsoever, nor any capital or investments)

Income other than lump sum = 52 x £139 = £7228.
Therefore liability to income tax = nil.
Therefore tax on lump sum = nil.

BobQ

Flugelhorn wrote: »

Presumably this lump sum https://www.gov.uk/deferring-state-pension/what-you-get

The says his Mum deferred her state pension in July for three years. I took that to mean that she qualified for the state pension in Jul 16.

If so according to the link above you can only get a lumpsum if you reach state pension age before 6 April 16.

kidmugsy

BobQ wrote: »

The says his Mum deferred her state pension in July for three years. I took that to mean that she qualified for the state pension in Jul 16.

I guessed that it meant she had deferred since July 2014. But you may be right; sometimes there's no telling what bad English means.