I have a small pension fund which is due. According to legislation passed in April 2006, I am entitled to the whole amount as a lump sum. This is just under £13,000. 25% of this is free of tax but the remainder will be taxed using an 'emergency' code on a 'Week 1' basis as if it was earned in 2006 ... in other words, I would seem to pay far more tax on it than if I were to take the 'Lump sum and yearly income' option.
Will I be able to claim this tax back, perhaps, over the next six years, if my income is really nowhere near this when averaged over a period of time?
Would I definitely be better off taking one of the 'Lump sum and yearly income' options? My bank won't advise me (in so many words) and the Insurance company simply say that they don't like the way it is so complex.
2006-07-18
11:53:29
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3 answers
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asked by
Owlwings
7