DOES LUMP SUM PENSION INCOME GO ON SA RETURN?

TAKING A PRIVATE PENSION LUMP SUM

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Quick question - just completing tax return for a director - mix of salary/dividends, not quite into 40%. (£30K SALARY, £5K DIVIDEND)

During 16-17 he took a pension lump sum (more than 25% of fund value) and paid tax on the remaining at the time at just below 40%.

I am not sure how this is treated on the tax return.  any help much appreciated.  He's asked me if he can get a tax refund relating to the tax paid on pension as he wasn't a 40% tax payer during the year.

I can't see anywhere in taxcalc to put this info.

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By Tosie
10th Jan 2018 13:00

Pension co. issues P60 and you enter it under "other pensions". Taxable amount is added to other income and tax calculated in usual way.

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By lionofludesch
10th Jan 2018 13:16

Yes, you should have a P60 - or P45 - depending on the circs.

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By mikeanddi
10th Jan 2018 15:35

Not necessarily, as I have found out today for a client in similar circumstances - see HMRC Pension Schemes Newsletter 40 here -

http://webarchive.nationalarchives.gov.uk/20111007154333/http://www.hmrc...

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By sammywitters
10th Jan 2018 17:05

now i am really confused, it should be taxed at 40% anyway regardless and other income ignored? :(

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By lionofludesch
10th Jan 2018 17:12

Is it an authorised or unauthorised payment ?

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