Lump sum
Johnsorento
Posts: 3 Newbie
Does my tax free, lump sum, from my pension, class as earnings, for the child maintenance?
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Johnsorento wrote: »Does my tax free, lump sum, from my pension, class as earnings, for the child maintenance?
No it doesn’t, your annual pension income will though.If my posts have random wrong words, please blame the damn autocorrect not me0 -
I have been researching this question for a while and I believe Newbutold is correct, a tax free lump sum from a pension does not form part of the child maintenance calculation, only income which is subject to tax is taken into consideration.
If the CMS give you any problems, since often their representatives seem rather clueless, then here is the relevant extract from the 2012 Child Maintenance Calculation Regulations Law:
"CHILD SUPPORT (CHILD SUPPORT MAINTENANCE) CALCULATION SI 2012/2677
REGULATIONS 2012
PART 4
THE MAINTENANCE CALCULATION RULES
CHAPTER 1
DETERMINATION OF GROSS WEEKLY INCOME
Current income from a pension
41. The non-resident parent’s current income from a pension is to be calculated as
the weekly average, over such period as the Secretary of State considers appropriate,
of amounts received by the non-resident parent from a pension or annuity or other
income (excluding UK social security pensions) of a kind that would be charged to tax
under Part 9 of ITEPA."
(Part 9 of ITEPA just means regular income tax)
Please post if you have any comments or opinions...0
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