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Pension, Limp sum and Annual Allowance
Chris_B1981
Posts: 1 Newbie
I am due to receive a pension from my DB scheme in the next few months. I can take part of this as a tax free lump sum. I also have a DC scheme that I plan to continue to contribute into for a number of years. Will taking the lump sum from the DB scheme reduce my annual allowace down from £40k to £4k (or £60k to £6k when the new rules come in).
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Comments
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No - the Annual Allowance is only reduced if you take taxable money from a DC pension. Neither taking a tax free lump sum nor taking your DB pension affect it.Chris_B1981 said:I am due to receive a pension from my DB scheme in the next few months. I can take part of this as a tax free lump sum. I also have a DC scheme that I plan to continue to contribute into for a number of years. Will taking the lump sum from the DB scheme reduce my annual allowace down from £40k to £4k (or £60k to £6k when the new rules come in).1 -
Pension, Limp sum and Annual Allowance
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