Anonymous
Share this content
0
529

Pension lump sum tax free

25% tax free?

Didn't find your answer?

Search AccountingWEB

A client has asked what the tax implications are if he took two of his pension out early. From the research available online I advised him that in most cases he could take 25% tax free and the difference will be taxed on.

He has just come back to me today to say that his pension provider said he couldnt take a lump sum out tax free at 25% because its a "self-employed" pension.

They offered no other choices of advice.

A little confused as I could see in most cases you could take 25% tax free out?

 

Replies

Please login or register to join the discussion.

15th Jul 2019 10:36

Since there is no such thing, as far as I know, as a "self-employed pension" I think some clarity is required. Does he mean a self-administered pension scheme? (Although such schemes do allow a 25% tax-free lump sum.)

Thanks (0)
Share this content