Tuesday, 21 April 2015

Pensions

The new pension rules allow for a variety of ways to take a lump sum from your pension fund. Each has different tax consequences. What factors should you consider before taking your money?

If you take your whole fund, 75% counts as taxable income. The same is true of a uncrystallised fund pension lump sum, but you can take as little as you want now and more later. Or you can take a completely tax free pension commencement lump sum of up to 25% of your fund, but subsequent withdrawals are fully taxable.

After 5 April 2015 you will be entitled to free financial advice about your pension under a government scheme.

No comments:

Post a Comment