A-Day tax-free lump sum enhancement ?

marc3

have a residual pension pot from 1990's/2000's and now in process of converting my accumulated sum into tax free lump sum at the usual 25% max and taking a small annuity .
been pointed out to me that as it was accumulated pre A-day 2006 harmonisation, i may (if i were to chose to do so) be able to take greater than the now 25%max .
not sure if i would want to anyway-but am curious as to amount of (possible ) enhancement 
no experience of this, and is a lot of hassle- P60's from pre 2006 etc etc .
Do i really need the hassle of finding that historic stuff ,but as i say-am curious regardless .

obviously a load of factors involved, but has anyone experience/knowledge of the sort of (possible )  percentage enhancement that may be available ?
e'g -if 25% becomes 28% then  just not worth even finding out, but if say 25% can become 40% tax free-i may as well enquire.

so just looking for any broad-brush feedback on the sort of enhancements above the current day norm of 25% that might  be obtained .

thanks

Steve182

Mine is predicted to be around 41% apparently, and I've no idea how that came about...

dunstonh

not sure if i would want to anyway-

Not sure why you wouldn't want to unless you have a GAR.

but has anyone experience/knowledge of the sort of (possible )  percentage enhancement that may be available ?

Most I have seen is 100%.  The worst I have seen is 25%.   

It is still worth getting what info you can.  Even if its just to reply with each box in the form saying "don't know" or "cannot find out" as the provider will hold some info and there will be a default position which can be higher than 25%.

TVAS

OMG It is worth the exercise it is called called Protected Tax Free Cash (PTFC) because pre A Day occupational pension schemes were based on service and salary and the tax free cash depended on the Inland Revenue regime that applied Pre 87, 87-89 and post 89. The higher the tax free cash the less tax you pay on the residual sum.

Yes do it get your P60s 3 years to 5 April 2006 if you had basic pay plus bonuses/P11D or your annual salary as at 5 April 2006 if you did not have a job with bonuses other P11D benefits.  

You can also take Small Pot with PTFC. 

If you cannot get copy P60s from your former employer contact said employer for their tax office and reference and ask HMRC to send them to you. You can also write to the National Insurance Contributions Agency they will confirm if they have it the name of your employer and show your contracted out earnings but that will not be your full salary so you will need to rack your brains however one should be able to calculate your full salary based on the NI contributions which the Contributions Agency will show. Good luck.

marc3

thanks for replies .
reason i am saying that not sure if i want to anyway, as i assume (always dangerous to assume ) if  more is available tax free up front-that it will then reduce my annuity/annual/monthly  pension ;and it is likely that a higher regular pension income suits me best .
that is my assumption, unless someone can illustrate that i will be better off if i do take more cash free  (i accept that i may have to pay a bit of tax on the monthly pension if overall income  exceeds £12500 

dunstonh

marc3 said:

thanks for replies .
reason i am saying that not sure if i want to anyway, as i assume (always dangerous to assume ) if  more is available tax free up front-that it will then reduce my annuity/annual/monthly  pension ;and it is likely that a higher regular pension income suits me best .
that is my assumption, unless someone can illustrate that i will be better off if i do take more cash free  (i accept that i may have to pay a bit of tax on the monthly pension if overall income  exceeds £12500 

In which case, you use the tax free lump sum to provide a regular income via other means. e.g. S&S ISA, annuity or even back into the pension each year.

TVAS

I echo dunstonh.