Pension Tax

[interele]

If I took all of my pension fund as cash who deducts the tax ?

Is it taxed before I get it or do I have to write the tax man a cheque

Ta

Mal

[BRIGHT SPARK]

It will be taxed at source by the provider and you will be issued a receipt.:-)

[Bazile]

Some bright person will no doubt happen along soon to answer your question

However the BBC money box dedicated a whole programme recently with respect to this new pension freedom .

It's a complicated matter , to say the least .

There are all sorts of pros and cons , if's and but's , things to consider , implications of doing this or not doing that , etc ,etc ,etc .

I can see people who are not savvy with the new legislation making a right mess of things and making decisions which are completely wrong for them .

Then there is the potential elephant in the room of companies springing up offering to do this and that for people .. potentially ending like the current PPI misselling scandal

[SirOracle]

The best piece of advice for anyone and everyone is to do NOTHING at the moment. You have plenty of time to let lots of dust settle, before you need to make any decision.

Don't be rushed into anything.

[Peter Pedant]

yeah Sir Orac is correct
but that is not the question...
[good advice tho']

a few of us have had letters about small funds -
and the detail seems to be 25% free and then they remit you the balance less basic tax

and it is then up to you as a non tax payer to get the rebate from the tax man. or if you are basic rate - spend it and if you are higher rate set aside enough for the tax bill at the end of the year

You pay tax at your marginal rate....

we think

[Hymie]

Based on what was said on Radio 4s Money Box programme, by taking the 25% tax free, plus the remainder (taxable) – you could find yourself assumed to be receiving this level of income every month over the coming tax year; and therefore possibly subject to 40% plus tax.

Although you will eventually get the overpaid tax back, you have been warned – it could take some considerable time to get your money back.

[ubasses]

I referred a very similar question to the link below yesterday, if you scroll down to the heading State of Emergency it explains how you can reclaim the overpaid tax without having to wait till the end if the tax year.

http://www.thisismoney.co.uk/money/pensions/article-2966766/Savers-using-pension-freedom-warned-pay-emergency-tax.html