tax implications of withdrawing from a pension scheme early
Withdrawal of cash/shares from a pension scheme before retirement age - tax penalties. Any way to relieve the tax charge?
Before I get the usual lectures about the above being completely mad, I already know, and furtunately did not advise the person I am speaking to, to do this. I also know that pension advice needs to be done by an IFA rather than an accountant.
I do however want to update my knowledge of the tax rules on the above, and, rather annoyingly, my tax guide (Bloomsbury) doesn't have any details on this specific part of the taxation of pensions. I've tried searching the HMRC website, which again, predictably was useless. What I have managed to figure out is that there is a big income tax penalty (something like 55%) although logically, I would have thought this should be subject to capital gains tax. I can't find the rules on calculating this however, and just want to make sure I know what I'm talking about from the tax standpoint on this, as it is something I've never seen before, so if anyone could explain, or point me to the relevant HMRC guidance, it would be much much appreciated.
Thank you in advance.
- Benefit in Kind 47 2
- Digital tax accounts - what do we expect? 832 16
- Renewals on property rental business 48 1
- Digita Accounts Production Advanced - general perception 285 7
- Windows 10 anyone? 33 1
- Not a question - just a POI 88 3
- MVL 52 2
- Bankstream 1,039 24
- FACTA form help with CRS definitions for SSAS 166 2
- SDLT 231 7
- Xerocon 2016 581 11
- CT600 Software - anyone else having issues? 360 8
- charity selling (donated) recycled materials & for scrap- VAT? 101 1
- Disengagement Help! 504 14
- Anybody have that old ACCA Student Training Record (STR)? 233 2
- Is Xero payroll as rubbish as I suspect it is? 1,566 33
- Earings from Gardening after retirement 61 1
- Software that posts COGS? 613 14
- Taxi Drivers Cost of Sale 543 20
- Maternity and claining expenses 164 4