Is 25% tax free pension income or capital?

Is 25% tax free pension income or capital for purposes of Normal Expenditure Out of Income?

Didn't find your answer?

I have a client who has taken around £110,000 as his 25% tax free cash from his pension. He already regularly uses the NEOI allowance but can he include this sum in say, the two year period from when he received it for this purpose or do HMRC deem this to be 'capital'.  The manuals are silent on the point and income is not defined for this purpose but the manual does refer to 'pension payments'.  many thanks 

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.