Refund if widow(er)’s pension scheme contributions

Shabbycat

Hi,
I’ve just received a pension quote from mycsp.
After the reduction of a premium payment of £4086.17, the refund payable is £12,096.99. 

Can anybody tell me if this is taxable?? I’m assuming yes. Can anyone tell me at what rate??
Thank you.

xylophone

This?

https://www.civilservicepensionscheme.org.uk/media/yiapsmei/crb-1-april2016.pdf

Am I entitled to a refund of my WPS contributions?

If you remain single through to your retirement, you will receive a refund of the widows/widowers contributions you paid for the period that you were single. This will be paid as an additional lump sum when you finally leave and take your pension, provided that this will not exceed the limit set by HMRC. (In the unlikely event that this applies, the excess will be paid to you as pension instead.) 

The lump sum will have deducted from it a one-off payment to provide a widow’s, widower’s or civil partner’s pension in case you marry

or register a civil partnership after you retire. If you have been married or in a civil partnership during your service, the payment will be based on your service since your marriage or civil partnership ended.

Neither the refund of contributions, nor the premium payment, will take into account any service transferred in to your Civil Service pension from another pension scheme.

See https://community.hmrc.gov.uk/customerforums/pt/95224c46-98e9-ed11-913a-00155d978126

Hi. Thanks for the reply. I know I am entitled to refund of WPS. What I need to know is whether HMRC will tax the refund and if so how is tax applied? Thanks.

Posted 10 months ago by HMRC Admin 10 

Hi
As the refund should be part of your lump sum, this should not be taxable.
Thankyou.

Shabbycat

Thank you very much.

horsewithnoname

Shabbycat said:

Hi,
I’ve just received a pension quote from mycsp.
After the reduction of a premium payment of £4086.17, the refund payable is £12,096.99. 

Can anybody tell me if this is taxable?? I’m assuming yes. Can anyone tell me at what rate??
Thank you.

It isn’t taxable

Shabbycat

Thank you 😃