do i include lump sum pension on sa

Didn't find your answer?

im helping my dad with a sa return for self emploment.

 

in the tax year he also received a lump sum from a personal pension.

He has already claimed the tax back on the 25% tax free part.  so there is no tax owed and no tax refund owed to him

 

does this still have to go on his tax return?

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By Marion Hayes
17th Jan 2017 08:14

No. It is not income

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By Wanderer
17th Jan 2017 09:32

stba2006 wrote:

He has already claimed the tax back on the 25% tax free part.  so there is no tax owed and no tax refund owed to him

Doesn't make sense?
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paddle steamer
By DJKL
17th Jan 2017 10:32

The key to treatment is what type of withdrawl was involved/how was it made up?

If a part crystallization of the fund , being part tax free lump sum plus part pension income withdrawl, the part that represents pension income should have been included on a P60 post year end and both the gross and the tax deducted re this element of the payment need included on the tax return. (the tax free part does not)

On the other hand it could have been a fully tax free withdrawl (withdrawl of the 25% tax free amount) with no tax return implications.

What you have posted is difficult to understand and accordingly it is pretty tricky for anyone to advise without sight of the paperwork received from the pension company e.g. I do not understand the "already claimed the tax back on the 25% tax free part" comment.

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By mbee1
17th Jan 2017 10:45

I suspect your dad completed form P53Z whereby he estimated his income to enable any over deduction of tax to be repaid. He should have been given a P45 showing the taxable element of the withdrawal and the tax paid.

It should be entered on the SA Return as an employment using the P45 figures. There is a box on the Return whereby the amount of any tax refund received during the year and paid by HMRC can be shown which ensures the liability is correct.

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