Small Pots Rule

PensionSort

Hello,

I am 55 , unemployed and have a H-L sipp with £9500 cash.

I am hoping to take it under the small pots rule this financial year.

As I am not working the 10k will be covered by my PA and so will not require any tax paid.

Has anyone done this or know anything about this?

How does the tax work when cashing in a small pot using the small pots rule?

Does anyone know how long it usually takes to cash in a sipp using the small pots rule?

Thanks in advance

kidmugsy

My wife did a small pots cash-in once. It was so uneventful that I can't remember much about it.

H-L tend to be very good over the phone - why not give them a buzz?

Linton

Small pots will be taxable as income under PAYE. Because of the way PAYE works with one-off payments there could be tax deducted which would need to be reclaimed from HMRC.

i'm-skint

I did one about three weeks ago, was in my account this week, so not long. Was from a company I worked for, not a large provider like HL. All paperwork included (P45's etc) and tax paid out from the 'pot' before I received it.

Dazed_and_confused

I am 55 , unemployed and have a H-L sipp with £9500 cash.

I am hoping to take it under the small pots rule this financial year.

As I am not working the 10k will be covered by my PA and so will not require any tax paid.

What is the 10k you refer to?

Assuming that 25% of the £9,500 is going to be a TFLS then that leaves £7,125 taxable income.

The pension provider should deduct £1,879.40 in tax from this.

Peelerfart

I may be wrong, I often am, but this is the first post I remember rejoicing the glory of a "small pot" !

Baalmaiden

Don't forget that jobseekers allowance is taxable