Brexit and AVCs

AlanP_2

G4OJR wrote: »

I intend decoupling my avc from the LGPS at some point so that I can take it earlier if I wish

Don't forget it becomes 25% TFLS & 75% taxable if you do that.

pandora205

AlanP wrote: »

Don't forget it becomes 25% TFLS & 75% taxable if you do that.

It includes the capital value of my LGPS pension in the calculation not just the AVCs so I'm not likely to exceed that.

I'm checking which of the Scottish Widows funds my AVCs are now in, as it's only this month that it's been transferred across from Clerical Medical.

Neasy

Hi there.

Just to reiterate AlanP's point; if the LGPS AVC fund is taken at a different time to the main pension it can no longer be taken as (part of) the 100% tax free PCLS; instead only 25% of the AVC fund is tax-free - see eghttps://mpfmembers.org.uk/content/how-may-i-be-able-use-my-house-avc-fund-retirement which says:

Take your AVCs as cash
You can take some or all of your AVC fund as a tax-free cash lump sum*, but you can only take it all as a lump sum if you draw it at the same time as your main LGPS benefits and provided, when added to your LGPS lump sum, it does not exceed 25% of the overall value of your LGPS benefits (including your AVC fund).

pandora205

I'm not planning to take it at a different time. It will be at the same time as my LGPS pension, so will be part of the 100% PCLS.

AlanP_2

Very sensible.