Child Benefit and Pension Tax Free Lump Sum (Pension Commencement Lump Sum)

LeatherOsprey

Anyone know if the tax free lump sum affects your Child Benefit payments in the year you take it?
I have been receiving Child Benefit this tax year ending April 21.
I am about to take the Tax Free Lump sum (>£60k) and a drawdown payment of the Income Tax Free Allowance (£12,500) in March. 
Will I need to repay Child Benefit.

Croeso69

LeatherOsprey said:

Anyone know if the tax free lump sum affects your Child Benefit payments in the year you take it?
I have been receiving Child Benefit this tax year ending April 21.
I am about to take the Tax Free Lump sum (>£60k) and a drawdown payment of the Income Tax Free Allowance (£12,500) in March. 
Will I need to repay Child Benefit.

PCLS is tax free so has no impact. You don't need to declare it either.

xylophone

and a drawdown payment of the Income Tax Free Allowance (£12,500) in March. 

Effect on your Adjusted Net Income for 20/21 of the above?

TVAS

oooooooooooooooooooooh get you taking a drawdown payment of the tax free allowance in month 12 March. This is pension ecstasy to me. Well done. £12,500 will be added to your other income however PCLS is not income it is cash as mentioned by others above. Are you in a pension scheme? If you are taking income will reduce the total contribution to £4,000 p.a. 

LeatherOsprey

xylophone said:

and a drawdown payment of the Income Tax Free Allowance (£12,500) in March. 

Effect on your Adjusted Net Income for 20/21 of the above?

Have had no taxable income to date this year - so the £12,500 will be it.

LeatherOsprey

TVAS said:

oooooooooooooooooooooh get you taking a drawdown payment of the tax free allowance in month 12 March. This is pension ecstasy to me. Well done. £12,500 will be added to your other income however PCLS is not income it is cash as mentioned by others above. Are you in a pension scheme? If you are taking income will reduce the total contribution to £4,000 p.a. 

Hey TVAS - we're becoming MSE buddies ;-)
I am not in a pension scheme, in terms of contributing in or accumulating years in a DB. I am about to start drawdown on my one SIPP. I realise that the Annual Allowance goes to £4000 pa. I can live with that - I am at LTA, and whilst I still hope to take payment eventually (next year perhaps) from a new business I have set up, I will taking dividends and just paying any Income Tax (I am not looking to make millions, or £100ks! from it). I might put £4000pa in a my other SIPP if I get enough - but probably won't - will be loading wife's pension, company sharesaves, both our ISAs etc. Will just drawndown from pension to at least the Income Tax Free Allowance each year, or as an when we need a bit more.

LeatherOsprey

Appears to be the case that PCLS won't affect Child Benefit then.