Another cashing in pension question

Another cashing in pension question

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r-kid

Original Poster:

842 posts

186 months

Monday 3rd August 2015
quotequote all
I'm looking for some advice/clarification to see if I understand the process correctly.

My mum has had her pension retirement letter coming through asking her what she want to do with her pot. Now the value is £10,958, so not a lot.

She wants to take this as cash & looking at the information she'll get 25% tax free and the remainder taxed at the emergency tax rate, which she will then have to submit another form to HMRC to get this back over paid tax back.

This is where I need some clarification, as all the info states claiming tax back will be at your normal tax rate. As my parents have lived in the USA for the last 10 years, she has not earned any money in this tax year. So does this mean that the £10,600 personal tax allowance is applied & she should get the majority of this back? Or are there different rules for expats?

Thanks in advance

PurpleMoonlight

22,362 posts

156 months

Monday 3rd August 2015
quotequote all
She is still entitled to the Personal Allowance.

But remember if any state pensions are paid these count towards it.

r-kid

Original Poster:

842 posts

186 months

Monday 3rd August 2015
quotequote all
Brilliant thanks for the quick reply. No state pension so no complications with that.