Confusion over returning tax free lump sums to the pot.

Albermarle

Savers not allowed to return their tax-free lump sums, HMRC warns

Sarahspangles

So if that sticks (and it’s certainly sticky stuff)… people who withdrew their TFLS will be taxed on the crystallised investments including any investment growth. Which they knew when they requested the TFLS.

Is it now advantageous for them to withdraw incrementally and replicate their holdings in S&S ISAs? So they’re not taxed on their gain. Thereby also triggering the MPAA.

NoMore

 The consensus from most who actually understood this and were not in it to generate clicks was the 25% would remain untouched with inflation eating away at the lump sum allowance instead. I have zero sympathy for people who took their tax free early because of press speculation 

QrizB

Sin in haste, repent at leisure.

leosayer

It's hard to see the HMRC having much sympathy with those who wrongly anticipated a change to future tax rules and are likely to pay more tax as a result.

How long before pension providers / FCA start demanding to see evidence of taking advice before allowing you to take your tax free cash?

af1963

Perhaps the Daily Telegraph will voluntarily compensate those who were misled by its scaremongering ?

No, thought not.

arthur_fowler

af1963 said:

Perhaps the Daily Telegraph will voluntarily compensate those who were misled by its scaremongering ?

No, thought not.

Far from it. People who have acted on their scaremongering coming back to them for help! 
https://www.telegraph.co.uk/money/pensions/private-pensions/i-raided-my-pension-in-a-panic-now-the-regulator-wont-help/

Cobbler_tone

arthur_fowler said:

af1963 said:

Perhaps the Daily Telegraph will voluntarily compensate those who were misled by its scaremongering ?

No, thought not.

Far from it. People who have acted on their scaremongering coming back to them for help! 
https://www.telegraph.co.uk/money/pensions/private-pensions/i-raided-my-pension-in-a-panic-now-the-regulator-wont-help/

Looking at 'Julia' I am struggling to muster any sympathy for some reason. 

Marcon

arthur_fowler said:

af1963 said:

Perhaps the Daily Telegraph will voluntarily compensate those who were misled by its scaremongering ?

No, thought not.

Far from it. People who have acted on their scaremongering coming back to them for help! 
https://www.telegraph.co.uk/money/pensions/private-pensions/i-raided-my-pension-in-a-panic-now-the-regulator-wont-help/

'Nerves gripped Julia Westcott-Hutton ahead of last month’s Budget. The 56-year-old had read that Labour was considering cutting the tax-free lump sum – the amount savers can take from their pension pots tax-free – to a third of its current value. Julia, an actor and former City worker, felt she was left with no choice but to withdraw £138,000 from two of her personal pensions.'

The power of rumour...

MetaPhysical

However.... The government could ease the media frenzy every budget day (which is becoming increasingly damaging) by making a simple statement: - "We have no plans in this parliament to make any adjustments to pensions taxation and thresholds" or words to that effect.

squirrelpie

Cobbler_tone said:

arthur_fowler said:

af1963 said:

Perhaps the Daily Telegraph will voluntarily compensate those who were misled by its scaremongering ?

No, thought not.

Far from it. People who have acted on their scaremongering coming back to them for help! 
https://www.telegraph.co.uk/money/pensions/private-pensions/i-raided-my-pension-in-a-panic-now-the-regulator-wont-help/

Looking at 'Julia' I am struggling to muster any sympathy for some reason. 

Julia Westcott-Hutton portrayed Party Guest in Sonic the Hedgehog 3.