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Section C Lump Sum

Royal Mail pension news and discussion.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser.
freespeech
MDEC
Posts: 762
Joined: 28 Jun 2007, 16:35

Section C Lump Sum

Post by freespeech »

What £ of the lump sum bonus, if any, is tax free? Is it also NI free?
BeamishStout
Posts: 387
Joined: 19 Sep 2012, 14:42
Gender: Male

Section C Lump Sum

Post by BeamishStout »

freespeech wrote:What £ of the lump sum bonus, if any, is tax free? Is it also NI free?
Pension Commencement Lump Sum is 25% of your pension pot (I believe) and can be taken free without deductions of tax or NI so long as it does not exceed your Lifetime Allowance.
freespeech
MDEC
Posts: 762
Joined: 28 Jun 2007, 16:35

Section C Lump Sum

Post by freespeech »

BeamishStout wrote:
freespeech wrote:What £ of the lump sum bonus, if any, is tax free? Is it also NI free?
Pension Commencement Lump Sum is 25% of your pension pot (I believe) and can be taken free without deductions of tax or NI so long as it does not exceed your Lifetime Allowance.
Thanks......and with the LTA for 2020/21 over £1million I doubt anyone on this site will be troubled by that!