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Bankrupcy and Pensions

Bankrupcy and Pensions

I have a client who was made bankrupt in 1994 and a charge was put on his pension by the Official Receiver.  When he turned 60 he bought an annuity and the income from this goes direct to the Official Receiver.  The Revenue have now amended his Notices of Coding to show this pension as taxable on him.  Is this income taxable on my client?


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07th Jun 2012 21:49


It's his pension, it's taxable and he is being made to use the income to repay his creditors.

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08th Jun 2012 09:26

I didnt think this is even possible

I have never heard of this happeing before.

I only read the other day that leglilation was being considered to make undischarged bankrupts over 55 take their pension in order to make payments during the period before discharge.

This would imply to me that currently no payments are required so the arrangement the OP describes seems funny to me. 


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08th Jun 2012 11:30

Law changed

Sometime after 1994, so currently no claims or charges are made against a Banukrupt's pension funds. OP's client was caught under old rules, so pension fund was part of estate and when it became available was claimed by OR.

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