tax on pension redress payment

zubeydoo6

Hi there, i am after advice if anyone has been through this and the outcome. I have been offered a redress payment of 95k for bad advice given regarding my company pension,The bad advice was given in 2009 but i was no longer working then i am a nil rate taxpayer also no tax deduction has been made from the redress because of this also there is no interest added to this figure. so  i have had lots of advice the company who dealt with the redress have told me that this in not income nor a capital gain so i should not be taxed on this also said  i don't have to declare it to HMRC.( so now i'm worried ) if i don't will i end up with a huge tax bill.?  i rang HMRC the chap i spoke with kept having to ask a supervisor because he wasn't sure he said 11k would be tax free up to 36k would be at 20% with the remainder at 30%. It seems unfair to be taxed so much.so i really don't know what to do now. any advice from anyone on this would be great thanks,

zubeydoo6

hello can anyone advise me please ?

xylophone

https://www.expertpensionclaims.co.uk/pension-guides/do-i-pay-tax-on-mis-sold-pension-compensation/#:~:text=We understand that it might,pension compensation is not taxable.

Above may assist.

If you require a definitive answer from HMRC, you should WRITE to them giving the precise details of  your circumstances/the nature of the claim/amount of compensation etc.

Keep a copy of your letter and send it "signed for".

Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom

zubeydoo6

Thankyou xylophone, i think its probably for the best to write to them i agree . I have had so much different advice i think only way i will find out is to do just that.