New Tax Year - any benefit in waiting
Glengowrie
Posts: 14 Forumite
I have a small stakeholder pension with Legal & General (about £7500). I am no longer working and am a non taxpayer. Under the new rules announced in the Budget I think I can cash this small pension in full and with no tax liability. My last annual benefit statement dated May 2013 showed the plan value at 5 April 2013, so I assume I will get another statement soon showing value to 5 April 2014. Is there any benefit or disadvantage in waiting till the next statement before applying to cash in the pension?
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Comments
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You cant cash it in until the new rules start in 27th March. Then there is the question of how long it will take the pension providers to have their processes in place. So you are most unlikely to be able to cash it in before the 5th April anyway. If you are in no hurry I would suggest waiting until things have settled down a bit.
You will only have no tax liability if your total income including the cash withdrawal (-25% for the tax free lump sum) is less than the tax allowance, £10000 after 5th April.0 -
Thanks for that very helpful advice. That's really good news for me.0
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Also, you have to be over the age of 60. If not, you'd have to wait a year before you can access the whole fund.0
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I thought the Budget changed that age restriction and lowered it to 55.0
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It changes next april. s far as I know, it remains 60 til then.0
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