Reclaiming tax from an AVC lump sum

NotSure74

Could anyone offer some advice please? My mum thought her pension included an income from her AVCs but when she recently turned 75 she had a letter asking what she intends to do with the AVCs as they'd just been sitting doing nothing! Not great planning but a nice surprise and she decided to take it all as a lump sum which she did in February.

The AVC company has given her a P45 stating she had £41,500 income and that they've paid £16,900 in tax on her behalf using an emergency tax code.

Her total income including state pension is £12700. My question is, can she claim back any of the tax she has paid? Importantly is she permitted to take some or all of this lump sum as a tax free lump sum? She never took a lump sum when she retired.

If not, is she simply required to pay 0% up to £12500, 20% on the next £37,500 up to £50,000 and 40% on everything above that? 

Many thanks 

dunstonh

Importantly is she permitted to take some or all of this lump sum as a tax free lump sum?

The UFPLS payment she has received should have taken the 25% tax free cash into account.

If not, is she simply required to pay 0% up to £12500, 20% on the next £37,500 up to £50,000 and 40% on everything above that?

Assuming England, yes.

NotSure74

Dunstonh thank you. I’ve gone back over the figures and I now realise they match exactly what you say so I’ll ask HMRC for a refund for her. It comes to about £7700 so she’s very grateful and relieved.