Working out lump sum. Do you include your supplement

Hawkey99 · Post by **Hawkey99** » 22 Jan 2019, 10:44

When you work out your tax free lump sum is it bra 60 & 65 pensions X 20 plus supplements plus AVC divided by 4 to give the answer or is Supplements not included.

I haven't included the new scheme...

Thanks

BeamishStout · Post by **BeamishStout** » 22 Jan 2019, 11:55

Hawkey99 wrote:When you work out your tax free lump sum is it bra 60 & 65 pensions X 20 plus supplements plus AVC divided by 4 to give the answer or is Supplements not included.

I haven't included the new scheme...

Thanks

Supplements will be included unless you are still working and have drawn pensions

You would need to do the following to get the Capital Value :-

Standard Annual Pension (+Supplement payable) x 20 + Standard Lump Sum + AVC = Capital Value.

(Or {Total of Pensions (without any lump sum) + Supplement} x 20 + Total Value of AVC's = Capital Value)

Max Tax-free lump sum = 25% of Capital Value

Plus as you say the new scheme numbers need to be factored in.

Hawkey99 · Post by **Hawkey99** » 22 Jan 2019, 13:55

Thanks Beamish.