Which tax year will this be assigned to.

pdev64

Hi,  I decided to cash in my smallest pension (approx 10K). In this tax year I will be able to reclaim all of income tax  on this, but next year, hopefully  I will be employed meaning I will lose that tax free amount if  the pension withdrawal is assigned to next tax year. On 29th march I received the following email from pension company.

_________

Good Afternoon

 

We’ve processed the payment you requested to your nominated bank account, and this will be with you in 5-7 working days.

 

You’ll also receive a letter confirming this payment. Please bear in mind we are seeing some delays in the postal delivery system at the moment, so this may take longer than usual to reach you.

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Now today is the last working day before the new tax year because of the easter bank holiday and the money is not in my account. My question. Is the date it arrives in my bank account the date the tax is liable or will the date the payment was processed on the written documentation (29th March) that I will receive be viewed as being proof that this is income from this tax year and not from the 21/22 tax year.  Thank you for any replies in advance

Dazed_and_C0nfused

I think what will actually matter is the date the pension company have reported to HMRC.

You may well already be able to see that on your Personal Tax Account, definitely if it is in the current tax year.

pdev64

Thank you very much Dazed for your reply. From its style the email sent to me was most probably an auto reply, so hopefully as they have informed me they have informed the tax office in an automated process. Nothing is certain, but I now feel I have a reasonable chance of this being taxed this year. I will contact the tax office to confirm in the near future

Regards pdev64