Withdraw pension to pay HMRC

TheLearner2008
TheLearner2008 Posts: 141
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edited 25 November 2023 at 3:06PM in Debt-free wannabe
Perhaps you are not aware of the thousands of contractors that are being targeted by MSC legislation. 

Anyway turns out I might have a huge tax bill. 

Is it possible for me to withdraw my private pension to pay debt?

I don’t live in the uk anymore anyway. 
Debt 1 June 2017: £35,000.00 ~ Debt now: £0

Comments

  • Brie
    Brie Posts: 9,271
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    It will depend on what type of pension it is, what the normal & early retirement dates are and what your age is. 

    You might be able to transfer it out of the UK via a QROPS and then access the money in the new country it lands in according to their rules.  But do take great care in this as if you get it wrong the money transferred might be subject to another 40% bill from HMRC.  
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • fatbelly
    fatbelly Posts: 20,221
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    Wait until you actually get a bill and then take advice.

    Using your pension pot would be the last option I would consider
  • sourcrates
    sourcrates Posts: 28,526
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    If its a private or workplace pension, you can access it at age 55, not before.

    Depending on how much is invested, you can take lump sum payments, or the whole lot as cash.

    Unsure if living abroad may be an issue tax wise, in any case, advice should be taken before hand.
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