Pension: taxed twice.
Discussion
After some advice please.
A friend got divorced last year. Part of her settlement was a £10,000 share from her ex's pension.
She wanted to take the share out as cash.
The original pension company said she had to open up a pension with them in her own name for her to be able to withdraw the money.
So she did this. They moved the money across and deducted tax (think it was 20%). Which left around £8,000 in the pot. She then withdrew the money into her bank and they took more tax (another 20% I think) which left her with just over £6,000.
She is not a higher tax payer.
Is this right? Taxed twice?
Thanks.
A friend got divorced last year. Part of her settlement was a £10,000 share from her ex's pension.
She wanted to take the share out as cash.
The original pension company said she had to open up a pension with them in her own name for her to be able to withdraw the money.
So she did this. They moved the money across and deducted tax (think it was 20%). Which left around £8,000 in the pot. She then withdrew the money into her bank and they took more tax (another 20% I think) which left her with just over £6,000.
She is not a higher tax payer.
Is this right? Taxed twice?
Thanks.
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