09 Mar 2015

A question about : Does withdrawal of pension pot affect Tax Credits?

I am over 55 and plan to cash in a pension pot in April. 25% of this will be tax free and the rest taxed at my marginal rate. It should just about be covered by my personal tax allowance so there will be no actual tax to pay (although I suspect I might have to pay it and claim it back). What I am wondering is whether the 75% will count as income for Tax Credits purposes. If so, I may have to reconsider.

Thanks for any help.

Best answers:

  • Guidance on tax credit income to include is available on their website - https://www.gov.uk/tax-credits-worki...e#other-income
  • Hi, I thought that I read another thread recently which said that this pot of cash was classed as savings and there are currently no savings limits (but interest over Ј300 is taken as earnings)
    Ted x
Категория: