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Pension Fund - Trivial Amount


John Brown
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I am sure about the rules and this was confirmed by the form that is used the claim that particular pot of money back asks, including other questions

Are you over 60

Are you in receipt of any other pension including any lump sums and what were the values of the funds expressed as a percentage of your lifetime allowance

Have you cashed in any other pension funds and what were the values of the funds expressed as a percentage of your lifetime allowance

They ask you then to add all the above plus the value they give your fund as a percentage.........................

They then ask you to confirm that the total value is less than 1%

No questions relate to existing, but not yet used, pension funds. My logic is that you can't put a value on a fund thats up and down by the day

The Taxman, on the phone, goes through the same checklist when you ask for a P53 Refund Form to be sent

Clearly people do try to get round the rules and you are warned that you face a £3000 fine if you try to cheat the system

I hope I am right and you two are wrong !

John

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THis Q and A from that site seems to answer the question

Q. I have personal pension plans worth £10,000 and £12,000. As they are both under £18,000 can I cash them in?

A. No. As both plans together exceed 1% of the Lifetime Allowance, the maximum level of cash that can be taken is limited to 25% of the capital value. If a cash sum of more than 25% of the capital value is paid, the payment will be unauthorised and will be subject to a 40% tax charge on the member and other tax charges on the scheme.

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