Lump sum tax free pension


J

Jay

Can anyone help please

I will be retiring shortly, and will be receiving a large lump sum tax free
pension. A friend told me I will need to include this in my yearly tax
return.

I thought this was tax free so why do I need to inform the taxman? Surely
the taxman will be informed of this by my pension provider.

Thank Jay
 
M

Martin

Jay said:
Can anyone help please

I will be retiring shortly, and will be receiving a large lump sum tax
free pension. A friend told me I will need to include this in my yearly
tax return.

I thought this was tax free so why do I need to inform the taxman? Surely
the taxman will be informed of this by my pension provider.

Thank Jay
You are right - and your friend is wrong. He is probably confusing it with
a State pension lump sum, which is taxable.

Assuming, of course, that your "large lump sum" really is tax free (eg the
"25% lump" you can claim).
 
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J

Jay

Martin said:
You are right - and your friend is wrong. He is probably confusing it
with a State pension lump sum, which is taxable.

Assuming, of course, that your "large lump sum" really is tax free (eg the
"25% lump" you can claim).

Many thanks!!
 

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