Pension Tax reclaim

mapleleaf75

My mother had a small pension from a part time job she had years ago. It wasn’t very large so she cashed it in and took the lump sum. Unfortunately between doing this and the funds reaching her account, she passed away.

When they paid the lump sum, they deducted 25% for tax purposes. Someone suggested we may be able to reclaim this for her estate, which I very much doubt but thought I’d ask here anyway to see what you folks thought.

unholyangel

The 25%, was that the amount she had deducted in tax from her taxable payment or are you referring to the first 25% that is non-taxable?

Whoever is executor/PR can reclaim any overpayment of tax but only if there is an overpayment. They would also be responsible for settling any underpayment of tax, if there was one.

mapleleaf75

Actually, my mistake. 25% of her pension was tax free, the rest she paid income tax on.