Taking Money From Pension

M_Hodge

Some advice please,

I am planning on taking pension tax free sum of about £50k to pay off my mortgage. I am over 55. I am on CTC and WTC. Question is will this affect my claim in any way, and do I need to inform Tax Credits about this. TIA

 

poppy12345

M_Hodge said:

Some advice please,

I am planning on taking pension tax free sum of about £50k to pay off my mortgage. I am over 55. I am on CTC and WTC. Question is will this affect my claim in any way, and do I need to inform Tax Credits about this. TIA

Savings do not affect any tax credits, only interest of more than £300 affects it.

M_Hodge

poppy12345 said:

Savings do not affect any tax credits, only interest of more than £300 affects it.

Thanks for your reply. 

So there is no need to inform Tax credits as there is no change in income, but only in  capital. Just want to make sure I don't fall foul of any change in circumstances that need to be reported.

poppy12345

As advised, it's classed as savings and will have no impact on your tax credits.

Newly_retired

As above, but if any change of circumstances leads to you having to claim any other means-tested benefits, then you need to check this out.

poppy12345

Newly_retired said:

As above, but if any change of circumstances leads to you having to claim any other means-tested benefits, then you need to check this out.

This isn't classed as a change of circumstances that will end the tax credits award.

Newly_retired

True, I didn’t say it was, but maybe in the future?.....

poppy12345

Newly_retired said:

True, I didn’t say it was, but maybe in the future?.....

Well, that's not what the OP is asking....