Pension Changes
So from April 2015 those over 55yrs old can cash-in their private pension pot. My understanding is that the first 25% is tax free. The balance is subject to the highest tax rate. How does that affect Expats, whose overseas income is not taxable? Presumably, as the income is UK sourced, normal UK taxation rules apply. Any thoughts on how best to limit tax liabilities if we take the full cash option?
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Re: Pension Changes
Originally Posted by mentalist
(Post 11647549)
So from April 2015 those over 55yrs old can cash-in their private pension pot. My understanding is that the first 25% is tax free. The balance is subject to the highest tax rate. How does that affect Expats, whose overseas income is not taxable? Presumably, as the income is UK sourced, normal UK taxation rules apply. Any thoughts on how best to limit tax liabilities if we take the full cash option?
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Re: Pension Changes
Spend it wisely ! Do not fall for any of the scammers who will be in touch soon.
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Re: Pension Changes
Originally Posted by Johnnyboy11
(Post 11647695)
Take 25% + £10,600 which is your personal allowance, so no tax due. Then take an amount equivalent to your PA each year thereafter, 'till the pot's empty ;)
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Re: Pension Changes
Originally Posted by mentalist
(Post 11647549)
So from April 2015 those over 55yrs old can cash-in their private pension pot. My understanding is that the first 25% is tax free. The balance is subject to the highest tax rate. How does that affect Expats, whose overseas income is not taxable? Presumably, as the income is UK sourced, normal UK taxation rules apply. Any thoughts on how best to limit tax liabilities if we take the full cash option?
Not all providers are providing full flexibility so it's not as simple as just making a withdrawal as requested each year as suggested above although that is essentially Income Drawdown which has been available for many years. Further official guidance is expected in June. Apart from the Pension Commencement Lump Sum all income arising in the UK is subject to UK income tax and the Personal Allowance applies. Anyone considering taking action needs to take proper advice from someone who actually understands the rules not from a bunch of people on the internet. :rolleyes: Info about the new rules here: UK Pensions Freedom – or is it? | Financialuae's Blog |
Re: Pension Changes
Originally Posted by mentalist
(Post 11648086)
But what about the rental income on my house back home? Also, if I cash in a Life policy, presumably that is added to my UK earned income for taxation purposes too.
See what I mean about taking proper advice? ;) |
Re: Pension Changes
Pensions were invented to protect people from their own folly. Now the nutters are running the looney-bin, anything goes.
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Re: Pension Changes
Originally Posted by scot47
(Post 11648171)
Pensions were invented to protect people from their own folly. Now the nutters are running the looney-bin, anything goes.
:ohmy::ohmy::ohmy: |
Re: Pension Changes
This must go no further ! Any further attempts at fraternisation will be reported to the Grumpy Old Gits Club (Scottish Chapter) !
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Re: Pension Changes
Originally Posted by Meow
(Post 11648122)
For the vast majority of people fully encashing their pension is a terrible idea. The whole point of a pension is to provide you with an income for life.
Not all providers are providing full flexibility so it's not as simple as just making a withdrawal as requested each year as suggested above although that is essentially Income Drawdown which has been available for many years. Further official guidance is expected in June. Apart from the Pension Commencement Lump Sum all income arising in the UK is subject to UK income tax and the Personal Allowance applies. Anyone considering taking action needs to take proper advice from someone who actually understands the rules not from a bunch of people on the internet. :rolleyes: Info about the new rules here: UK Pensions Freedom – or is it? | Financialuae's Blog |
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