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Do I have to declare a lump sum from my NHS pension when moving into drawdown?
Thursday 25 Sep 2025When I retired from the NHS in 2008, I received a lump sum payment from the superannuation scheme, in addition to the NHS pension. I now plan to put my SIPP into drawdown and withdraw the 25% tax-free lump sum from it. Do I have to declare the NHS lump sum when applying for drawdown? Does the NHS...
How will the chancellor’s inheritance tax plans affect my pension wishes?
Thursday 18 Sep 2025I am 73 years old and want to understand more how my pensions will be caught by inheritance tax. Is it likely pension pots will count in one’s estate for all ages (not just 75 plus) for inheritance tax? Is it possible for conversion to a bare trust to be offered to customers? I wish to leave to...
What happens if I go over my pension tax relief limit?
Thursday 11 Sep 2025Pension contributions are taken from earnings automatically, so if you had unexpected extra income during the year (bonus, overtime), contributions would increase. What would happen if too much had then been put into a SIPP? I assume the employer’s pension scheme would take precedence, and the...
Will beneficiaries be able to retain a SIPP after paying inheritance tax?
Thursday 04 Sep 2025As you know SIPPs may be liable for Inheritance tax of 40% from 6th April 2027. Will beneficiaries be able to retain the passed over SIPP after paying 40% inheritance tax? Say, if I specify in my will that my SIPP is to be divided into four beneficiaries, can all four beneficiaries keep the...
How can I avoid falling foul of HMRC recycling rules?
Thursday 14 Aug 2025I’m planning on withdrawing around £28,000 from my SIPP around January 2026 but don’t want to fall foul of HMRC’s tax recycling rules with my pension contributions during this tax year. I think I get the idea of not increasing my cumulative contributions (triggering tax relief) ‘significantly’ (30...
Does it matter when I take my 25% tax-free allowance?
Thursday 07 Aug 2025My question is about taking 25% tax free cash if you have a number of pension pots and if there are any time constraints. In my case, I took early retirement after April 2006 and 25% of my defined benefit pension fund, over £100,000 tax free. I have a SIPP with value of £160,000 and I need to...
What are the rules on receiving income if I have several different pension schemes?
Thursday 31 Jul 2025I’m a member of a defined benefit scheme which has my normal retirement date as my 62nd birthday. If I start to receive income from this scheme from this date does this crystallise the funds in my company defined contribution and personal pension schemes? Neil Rachel Vahey, AJ Bell Head of Public...
Should I move dividend payers out of my SIPP to take the income?
Thursday 24 Jul 2025I have a question about SIPPs and dividends. My SIPP is geared to generate significant dividend income in retirement, but are the dividends classed as income, so rather than 8.75% tax I’d be liable for the 20% basic rate of income tax (as long as I don’t breach the £50,270 limit)? I don’t want to...
How do the carry-forward rules on pension contributions work?
Thursday 17 Jul 2025I could do with clarification on the carry forward rules. The guide is that I must have used up my full allowance for the current tax year. I am taking very low salary as a director of my own business so my earnings are capped at £12,570. Last year I put the maximum I can personally place into my...
Can I cash in my pension and invest the money myself?
Thursday 10 Jul 2025I am seeking help regarding cashing in a pension plan completely to invest the money myself, or withdrawing some money from the plan to invest myself. I am seeking help regarding cashing in a pension plan completely to invest the money myself, or withdrawing some money from the plan to invest...