JLT Wealth Management review of pension transfer

Bigbird21

I was very suspicious on receiving the same letter. I called the FCA to check they were a legitimate company before I responded. This was about 2 years ago & I didn’t expect anything to come from it. However, I have just received a letter offering a significant sum of compensation.
so my advice, follow it up, you have nothing to lose.
Can anyone offer advice re tax implications … I am working f/t and in the 20% tax bracket, JLT have deducted tax from their calculation. Do I have to declare this on my self assessment and pay any further tax? Should I seek tax advice from accountant or financial advisor? 

Any advice gratefully received, thank you

Pyewacket69

Bigbird21 said:

Can anyone offer advice re tax implications … I am working f/t and in the 20% tax bracket, JLT have deducted tax from their calculation. Do I have to declare this on my self assessment and pay any further tax? Should I seek tax advice from accountant or financial advisor? 

Any advice gratefully received, thank you

Glad to hear you got your redress! The 15% confused me, but if you imagine the money was in a pension, where it 'should' have been: 

You have a pension of £100,000 you decide to withdraw. The first 25% is tax free, so that's £25,000.
The remaining 75% you must pay basic income tax on which is currently 20%. 
Therefore 20% of £75,000 is £15,000
And £15,000 is 15% of that original £100,000. So this is why they use the 15% figure as it's what most tax payers would expect to receive from that pot.

Hope that makes sense, you're square with HMRC. If its not clear to you then call JLT for an explanation and details - don't pay for accountant or FA if you're a basic rate tax payer. 

Bigbird21

Pyewacket69 said:

Bigbird21 said:

Can anyone offer advice re tax implications … I am working f/t and in the 20% tax bracket, JLT have deducted tax from their calculation. Do I have to declare this on my self assessment and pay any further tax? Should I seek tax advice from accountant or financial advisor? 

Any advice gratefully received, thank you

Glad to hear you got your redress! The 15% confused me, but if you imagine the money was in a pension, where it 'should' have been: 

You have a pension of £100,000 you decide to withdraw. The first 25% is tax free, so that's £25,000.
The remaining 75% you must pay basic income tax on which is currently 20%. 
Therefore 20% of £75,000 is £15,000
And £15,000 is 15% of that original £100,000. So this is why they use the 15% figure as it's what most tax payers would expect to receive from that pot.

Hope that makes sense, you're square with HMRC. If its not clear to you then call JLT for an explanation and details - don't pay for accountant or FA if you're a basic rate tax payer. 

I’m amazed as I did think it was a scam, then  doubted that it would actually amount to anything.  So a real pleasant surprise. However off course, I should never have sold out, I realise now.

JLT did explain in the letter but your explanation is much clearer!  Pensions and tax = confusion to me. Thank you so much for clarifying, really appreciate it 👍

Pyewacket69

Bigbird21 said:

I’m amazed as I did think it was a scam, then  doubted that it would actually amount to anything.  So a real pleasant surprise. However off course, I should never have sold out, I realise now.

JLT did explain in the letter but your explanation is much clearer!  Pensions and tax = confusion to me. Thank you so much for clarifying, really appreciate it 👍

Same here thinking it was something dodgy, then expecting just a few thousand maybe - so very nice suprise indeed. 
Very welcome, glad the explanation helped. 

BantamBungle

Pyewacket69 said:

Bigbird21 said:

I’m amazed as I did think it was a scam, then  doubted that it would actually amount to anything.  So a real pleasant surprise. However off course, I should never have sold out, I realise now.

JLT did explain in the letter but your explanation is much clearer!  Pensions and tax = confusion to me. Thank you so much for clarifying, really appreciate it 👍

Same here thinking it was something dodgy, then expecting just a few thousand maybe - so very nice suprise indeed. 
Very welcome, glad the explanation helped. 

@Pyewacket69, I've just received my redress letter from JLP and was struggling to understand the tax implications, searching normal tax based websites were no help, thank you for your perfect explanation, it's helped a few others who I work with to understand and put their minds at rest.

The difference between the company pension and the one I moved to was unreal, I would have had no idea if they hadn't started the review.

Now to start looking for some good safe investment opportunities for when I receive the redress payment into my bank,

Pyewacket69

BantamBungle said:

Pyewacket69 said:

Bigbird21 said:

I’m amazed as I did think it was a scam, then  doubted that it would actually amount to anything.  So a real pleasant surprise. However off course, I should never have sold out, I realise now.

JLT did explain in the letter but your explanation is much clearer!  Pensions and tax = confusion to me. Thank you so much for clarifying, really appreciate it 👍

Same here thinking it was something dodgy, then expecting just a few thousand maybe - so very nice suprise indeed. 
Very welcome, glad the explanation helped. 

@Pyewacket69, I've just received my redress letter from JLP and was struggling to understand the tax implications, searching normal tax based websites were no help, thank you for your perfect explanation, it's helped a few others who I work with to understand and put their minds at rest.

The difference between the company pension and the one I moved to was unreal, I would have had no idea if they hadn't started the review.

Now to start looking for some good safe investment opportunities for when I receive the redress payment into my bank,

@BantamBungle glad my novice explanation helped you too. I imagine if you're a higher rate tax payer or have no other pension savings it may be worth looking into more to ensure you've not losing out in the longer term. I simply calculated that my partners current pension would use up all his personal tax allowance anyway. Best of luck with the investment! 

Hello3

Had the letter myself JLT. Investigated them as i thought i had no dealings with this company.
 Anyway turns out to be legit. Allowed them to investigate. Wow glad i did. Not only me but know of others. One has had  a very large amount put into his pension. He could not have the cash as he had already taken his 25% tax free.
Got my letter back after giving JLT permission to look into my pension transfer. About a years later got the result. so glad i allowed them to look into. 
 If they have sent you a letter to investigate it is because the have had some connection with who ever advised you otherwise you would not have received a letter form JLT
From what i found out is they have to do this.. 
Don`t make the mistake of dismissing this letter. Yes do checks to make sure. So easy to check with the internet these days.

Davidswadkins

YayaToure said:

I transferred a pension back in 2012. Last year, I got the same letter. JLT have simply been instructed by the FCA to review the advice they gave. They didn't give me any because:

A. I had already consulted with my own financial adviser.

B. We had already transferred the funds into another pension fund.

C. I declined their advice at the time.

After some telephone conversations with JLT, I advised them that they didn't advise me, and therefore the review was unnecessary.  On 10th June this year, they wrote advising me that because I hadn't responded to their request, they would close the file after 21 days. Today, I get a letter stating because I haven't responded, they'll close the file after 14 days. Oh Boy!! Can't Wait!!

mikelj99 said:

Just in case anybody else reads this - I've been in the same situation and JLT have been "reviewing" for nearly 2 years now. It's been a joke. Timescales they have promised to resolve this by have come and gone, I've had to fill in a number of LoA's as they keep expiring, and I have today lodged a complaint with the financial ombudsman. I too was advised to leave a FSP and offered a cash payment as part of the transfer (which, due to circumstances at the time, incentivised me to be honest). Wish now I'd never agreed....

mikelj99 said:

Just in case anybody else reads this - I've been in the same situation and JLT have been "reviewing" for nearly 2 years now. It's been a joke. Timescales they have promised to resolve this by have come and gone, I've had to fill in a number of LoA's as they keep expiring, and I have today lodged a complaint with the financial ombudsman. I too was advised to leave a FSP and offered a cash payment as part of the transfer (which, due to circumstances at the time, incentivised me to be honest). Wish now I'd never agreed....

mikelj99 said:

Just in case anybody else reads this - I've been in the same situation and JLT have been "reviewing" for nearly 2 years now. It's been a joke. Timescales they have promised to resolve this by have come and gone, I've had to fill in a number of LoA's as they keep expiring, and I have today lodged a complaint with the financial ombudsman. I too was advised to leave a FSP and offered a cash payment as part of the transfer (which, due to circumstances at the time, incentivised me to be honest). Wish now I'd never agreed....

Think again wisely, and I fully understand everyone’s concern with all the scams in this world today. However, I have just been paid a large sum into my account today, this never happens to me, but today it did, so unexpected but true.
I’m not sure what the rules are here about  people being able to leave contact details to let people know how it all progressed etc, but for weeks I’d tried to do research, then after discussing it all with my pension advisor, the offer calculation seemed to match up, I did some calling round and some online investigating and signed the form, yes with my bank account details on and sent back and had confirmation that they had been received last Friday 2nd July and was checking my bank account every day for the last week in fear, and checking my current pension, then today checked my bank again and then noticed the 6 figure payment had gone in
yes less than a week after filling in the forms
think hard (my mum and family are the cautious type, but if I had taken their advice I would not have received this life changing amount, and at my time of life it is most welcome) if I can help or convince anyone I will do so happily 

Davidswadkins

Sorry so as not to confuse anyone, this process did start with forms coming through the post unexpectedly and I did on a few occasions throw new forms into the bin but perhaps it is about 2 years since I first filled in the original forms, but today the money has gone into my account and I can’t explain how this changes things for me and my wife

Davidswadkins

dunstonh said:

Can't understand why some firm are offering to go to these lengths when no fee is being asked?

They are not choosing to do this.  They have been instructed.

The only other query that I am bothered about is that the letter is addressed to myself in a previous name?

Was that your name at the time of the transfer?

At this moment in time I am not bothering to pursue it any further.

Why?   That is not very wise.

dunstonh said:

Can't understand why some firm are offering to go to these lengths when no fee is being asked?

They are not choosing to do this.  They have been instructed.

The only other query that I am bothered about is that the letter is addressed to myself in a previous name?

Was that your name at the time of the transfer?

At this moment in time I am not bothering to pursue it any further.

Why?   That is not very wise.

dunstonh said:

Can't understand why some firm are offering to go to these lengths when no fee is being asked?

They are not choosing to do this.  They have been instructed.

The only other query that I am bothered about is that the letter is addressed to myself in a previous name?

Was that your name at the time of the transfer?

At this moment in time I am not bothering to pursue it any further.

Why?   That is not very wise.

YayaToure said:

I transferred a pension back in 2012. Last year, I got the same letter. JLT have simply been instructed by the FCA to review the advice they gave. They didn't give me any because:

A. I had already consulted with my own financial adviser.

B. We had already transferred the funds into another pension fund.

C. I declined their advice at the time.

After some telephone conversations with JLT, I advised them that they didn't advise me, and therefore the review was unnecessary.  On 10th June this year, they wrote advising me that because I hadn't responded to their request, they would close the file after 21 days. Today, I get a letter stating because I haven't responded, they'll close the file after 14 days. Oh Boy!! Can't Wait!!

YayaToure said:

I transferred a pension back in 2012. Last year, I got the same letter. JLT have simply been instructed by the FCA to review the advice they gave. They didn't give me any because:

A. I had already consulted with my own financial adviser.

B. We had already transferred the funds into another pension fund.

C. I declined their advice at the time.

After some telephone conversations with JLT, I advised them that they didn't advise me, and therefore the review was unnecessary.  On 10th June this year, they wrote advising me that because I hadn't responded to their request, they would close the file after 21 days. Today, I get a letter stating because I haven't responded, they'll close the file after 14 days. Oh Boy!! Can't Wait!!

I was paid out today after very similar situation, probably 18-24 months after first receiving letters from JLT