Cash In Pension which Tax Year

Butts

If you cash a Pension in say this Month is the Tax payable at the point of cashing in or when you actually get the money ?

If I cash it in today and don't get the money until the new Tax Year will it count as Income in the current Tax Year or next Years ?

Many thanks.

SVaz

You are well past the cut off for March so you will receive (and be taxed) on the money in April, so 25-26 tax year. 

My Wife set up a regular drawdown payment yesterday and it won’t start until the 28 April because it was past the cut off date ( intentionally). 

dunstonh

If you cash a Pension in say this Month is the Tax payable at the point of cashing in or when you actually get the money ?

Its the point it goes through the payroll system.   Not when you get it.

The first cut off for drawing a pension in this tax year is today for many platforms (where funds are required to be sold and are not already in cash).    Some of the pre-funding platforms have a deadline of next week.   

So, you are running it very tight if you want to do it this tax year.

Butts

Rang Aviva they confirmed the proceeds will fall in the next Tax Year (which I wanted) and I get a P45 !!

Sorted !!

Sarahspangles

AJ Bell’s deadlines were 10/3 for a TFLS, 17/3 for a UFPLS and noon on 28/3 for a one-off BACS/CHAPS payment where pension is in payment.