Tax on UFPLs Cash Balance Fund

[July 1981]

One for Robert

I will shortly be taking my NRA 65 and have been wondering how the UFPLS cash balance fund will be taxed, will they use my remaining 20% rate and then adjust my pay to 40% once I trigger that band or will they tax the UFPLS at 40% and refund any of my spare 20% tax rate in the next financial year?

I ask because I will have an AVC ( new pension), Pension contributions and RM shares which would attracted 40% tax relief if they use up my 20% rate with my cash balance fund.

[RobertT]

I'm no expert on the intricacies of the tax system, but in my opinion the most likely is they tax the UFPLS at 40% and then refund any over payment. Which could be via a change in tax code or cheque/BACS.

The people to ask are HMRC.

[July 1981]

Thanks Robert, good idea re: HMRC