tax rate on taking funds from AVC pot

Flugelhorn

I have an old AVC pot of about 150K - if I want to take a lump sum out of it, how much would I get taxed (40% tax payer) ? - would it all be 40% or would it be more if it took me over another threshold?

Marcon

Flugelhorn said:

I have an old AVC pot of about 150K - if I want to take a lump sum out of it, how much would I get taxed (40% tax payer) ? - would it all be 40% or would it be more if it took me over another threshold?

Is this still 'coupled' to the old occupational scheme - and if so, is there any scope for taking any of it tax free?

Dazed_and_C0nfused

Flugelhorn said:

I have an old AVC pot of about 150K - if I want to take a lump sum out of it, how much would I get taxed (40% tax payer) ? - would it all be 40% or would it be more if it took me over another threshold?

Assuming you aren't Scottish resident and mean you are already a higher rate payer then you would have a few things which could come into play.  Not necessarily an exhaustive list but some to think about.

Savings nil rate reduced from £500 to £0
Tapering of Personal Allowance
HICBC
TFC implications

Flugelhorn

Marcon said:

Flugelhorn said:

I have an old AVC pot of about 150K - if I want to take a lump sum out of it, how much would I get taxed (40% tax payer) ? - would it all be 40% or would it be more if it took me over another threshold?

Is this still 'coupled' to the old occupational scheme - and if so, is there any scope for taking any of it tax free?

no should have said it was freestanding AVC so not attached - don't think I can take any tax free as breached LTA on taking occupational pension 

Flugelhorn

Dazed_and_C0nfused said:

Flugelhorn said:

I have an old AVC pot of about 150K - if I want to take a lump sum out of it, how much would I get taxed (40% tax payer) ? - would it all be 40% or would it be more if it took me over another threshold?

Assuming you aren't Scottish resident and mean you are already a higher rate payer then you would have a few things which could come into play.  Not necessarily an exhaustive list but some to think about.

Savings nil rate reduced from £500 to £0
Tapering of Personal Allowance
HICBC
TFC implications

good points - no young offspring these days, and yep lost the personal allowance in the past - had forgotten about that   

what is TFC?

Dazed_and_C0nfused

Flugelhorn said:

Dazed_and_C0nfused said:

Flugelhorn said:

I have an old AVC pot of about 150K - if I want to take a lump sum out of it, how much would I get taxed (40% tax payer) ? - would it all be 40% or would it be more if it took me over another threshold?

Assuming you aren't Scottish resident and mean you are already a higher rate payer then you would have a few things which could come into play.  Not necessarily an exhaustive list but some to think about.

Savings nil rate reduced from £500 to £0
Tapering of Personal Allowance
HICBC
TFC implications

good points - no young offspring these days, and yep lost the personal allowance in the past - had forgotten about that   

what is TFC?

Tax free childcare.  There is a scheme which has a hard £100k limit.  But not an issue for you now 🙂

Flugelhorn

Dazed_and_C0nfused said:

Tax free childcare.  There is a scheme which has a hard £100k limit.  But not an issue for you now 🙂

Wish it was around when the kids were younger! 

Flugelhorn

OK - juts reading up on this:

I got IP2016  and took 200k lump sum from occ pension - knowing that I could have taken more but the general advice was not to take it 

Does that mean I can still take some tax free from another scheme or are they quite separate ??

Just looking at this from the gov.uk site 

"If you hold individual protection 2016, you will be entitled to a tax-free lump sum of the lower of:

• 25% of the value of all your pension pots on 5 April 2016 (previously known as your protected amount)
• £312,500

For example, if the value of all your pension pots on 5 April 2016 was £1.3 million, you’ll have an increased tax-free lump sum of £312,500."

dunstonh

no should have said it was freestanding AVC so not attached - 

FSAVCs were reclassified as PPPs (personal pension plans) in 2006.   So, it will be subject to the same taxation as PPPs and SIPPs (in case you have been googling it).

DRS1

Flugelhorn said:

OK - juts reading up on this:

I got IP2016  and took 200k lump sum from occ pension - knowing that I could have taken more but the general advice was not to take it 

Does that mean I can still take some tax free from another scheme or are they quite separate ??

Just looking at this from the gov.uk site 

"If you hold individual protection 2016, you will be entitled to a tax-free lump sum of the lower of:

• 25% of the value of all your pension pots on 5 April 2016 (previously known as your protected amount)
• £312,500

For example, if the value of all your pension pots on 5 April 2016 was £1.3 million, you’ll have an increased tax-free lump sum of £312,500."

So did you make a note of "the value of all your pension pots on 5 April 2016"?

Maybe this helps?

Check the protected allowances on your pension savings - GOV.UK

Are you going to be one of those people who need a Transitional Tax Free Lump Sum Certificate?  Good luck

Flugelhorn

DRS1 said:

Flugelhorn said:

OK - juts reading up on this:

I got IP2016  and took 200k lump sum from occ pension - knowing that I could have taken more but the general advice was not to take it 

Does that mean I can still take some tax free from another scheme or are they quite separate ??

Just looking at this from the gov.uk site 

"If you hold individual protection 2016, you will be entitled to a tax-free lump sum of the lower of:

• 25% of the value of all your pension pots on 5 April 2016 (previously known as your protected amount)
• £312,500

For example, if the value of all your pension pots on 5 April 2016 was £1.3 million, you’ll have an increased tax-free lump sum of £312,500."

So did you make a note of "the value of all your pension pots on 5 April 2016"?

Maybe this helps?

Check the protected allowances on your pension savings - GOV.UK

Are you going to be one of those people who need a Transitional Tax Free Lump Sum Certificate?  Good luck

Yes I would have had a note of the value in 2016 when I applied for the IP2016. Have just logged in and protected allowance is listed there 

Haven't heard of transitional tax free lump sum cert - more reading to do !

PS have started doing some reading - yes looks like I might need this cert and it may get me some of the money tax free.