Very small NEST pension help please.

sparkiemalarkie

Hello, my OH has a NEST pension valued at £1,640 in total. He is a non tax payer with an income of less than £10,000 pa.
Can he gain access to the entire £1640 as a lump sum without paying any tax on it?
If so what's the best way to sort this please?
tia
s x

Zanderman

Is he over 55?

Dox

sparkiemalarkie said:

Hello, my OH has a NEST pension valued at £1,640 in total. He is a non tax payer with an income of less than £10,000 pa.
Can he gain access to the entire £1640 as a lump sum without paying any tax on it?
If so what's the best way to sort this please?
tia
s x

If he is over 55 and the NEST pension, added to his other income from all sources for the tax year, would be under his personal allowance, then yes, he could.

He needs to look on NEST's website for info about how to proceed.

ffacoffipawb

And take as a "small pot" so that they dont limit future contributions to £4000. The amount received will be the same as any other full encashment though basic rate tax on 75% of the withdrawal will probably be taken and would have to be reclaimed from HMRC.

sparkiemalarkie

Thank you.
He is over 55 and is taking his state pension.
I will have a look at the website to see how to do it.
Thanks for the help
sx

Albermarle

He might have to call them as they are normally sensitive about releasing pension money without going through a few questions to make sure he understands what he is doing.

xylophone

https://www.nestpensions.org.uk/schemeweb/memberhelpcentre/retirement-pot/how-to-take-money-out.html

sparkiemalarkie

xylophone said:

https://www.nestpensions.org.uk/schemeweb/memberhelpcentre/retirement-pot/how-to-take-money-out.html

Thank you so much for the link xylophone. I'll have a look through to see the best way to do things.
Would it be a good idea to call the tax office to get a tax code for this or will it automatically kick in?
many thanks
sx

xylophone

See https://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/
Above is what normally happens - he can  reclaim overpaid tax as explained in the link.