25 Mar 2016

A question about : Private Income Drawdown April 2015

Under the new rules being implemented in April 2015, I want to use my pension fund which is with two companies, Scottish Life and Skandia totalling Ј134,000 to provide an income up to the value of the prevailing tax threshold around Ј10,000 per annum, leaving the balance invested where it currently is. My question is can I do it and can I avoid paying tax, or because the fund was built up by tax free contributions will it always be subject to tax at 20%? I will be 60 in June 2014. This is like a version of Income drawdown and avoids Pension companies taking as much as 30% commission which is outrageous. Is this viable?

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