Scottish Widows

Post by **freespeech** » 20 Jul 2020, 07:26

Any idea why the SW website for my Bonusplan and Flexiplan AVC's both say that the cash lump sum is taxable?

Post by **ihatedogs** » 20 Jul 2020, 10:51

freespeech wrote:Any idea why the SW website for my Bonusplan and Flexiplan AVC's both say that the cash lump sum is taxable?

I think that figure is 75% of your total pot which, after taking into account the tax free 25% lump sum, is indeed taxable.
You can choose to take that money upfront or as a monthly pension.

Post by **RobertT** » 20 Jul 2020, 13:33

freespeech wrote:Any idea why the SW website for my Bonusplan and Flexiplan AVC's both say that the cash lump sum is taxable?

It's just the standard SW pensions platform and doesn't account for the fact your cash is able to be taken tax free with your main RM pension benefits.

Post by **RobertT** » 20 Jul 2020, 13:34

ihatedogs wrote:
freespeech wrote:Any idea why the SW website for my Bonusplan and Flexiplan AVC's both say that the cash lump sum is taxable?
I think that figure is 75% of your total pot which, after taking into account the tax free 25% lump sum, is indeed taxable.
You can choose to take that money upfront or as a monthly pension.

That is the case with the RMDCP, although you can do draw down or UFPLS aswell.
RMPP AVC's via Bonusplan and Flexiplan, also invested via SW, are different. You can use them to fund your whole tax free lump sum when factoring in the value of NRA60 & NRA65 benefits.