UK pensions

[nzexpat]

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How exactly were they 'useless' re your business & what is the relevance to this board?

First i do not wish to discuss my old buisness ,but the staff of the embassy are in my and many other expats estimation "paper shufflers third class" to see their level of competance for one thing ,i do not know if you were here during the Tsunami ,but i had friends caught up in it ,the level of incompetance was catastrophic, if you do not believe me just google it ,as to the relevance to this thread ,we as expats have to use the embassy and if they are no good at any part of their jobs ,they are of no use to us ,in fact ,paper shufflers 3rd class is a step up the ladder for some., personally i blame succesive govts for allowing 5th grade people join the not only foreign office but all walks of public service.and you my friend and i ,pay their inflated wages and pensiones ,unless you are one ,then you live here with your nice index linked pension.

Easy to imagine how a person with "attitude" could alienate themselves from any form of assistance.

I and many others have found the BE to be helpful and efficient.

[billd766]

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Still to do with UK pensions but relevant to Thailand.

I had an email from the RBL today referring to the letter of confirmation of pension details provided by the UK embassy.

WEF 23rd March 2015

From 23^rd March 2015 British nationals requiring

• Consular letter confirming pension/income for retirement visa in Thailand
• Legalising a signature or seal

Will need to apply for this service by post.

Letter confirming pension/income for retirement Visa

Information about this service including how to apply by post can be found at www.gov.uk/notarial-and-documentary-services-guide-for-thailand

(Scroll down the document to find the relevant section)

It seems that now you are no longer permitted to go to the embassy first thing in the morning and collect it after lunch.

You now HAVE to post it and wait a few days to get it and find out if they got it right.

What on earth is the use of the embassy anymore?

Unlike you many do not live next door to the Embassy.

I, and many others have secured a Letter confirming pension/income for an extension of stay (not a visa) by mail from the BE. A fast and efficient service which very cost effective when one lives a long way outside Bangkok.

Actually I live about 360km away near the Mae Wong national park and not next door to the embassy.

What is concerning me is that many of the services traditionally provided by the embassy are now being outsourced/hived off whatever you want to call it for the average UK citizen and their may come a time when for example to get a pension letter confirming the amounts you may have to contact the UK. It is NOT the fault of the Embassy I feel but that of the FCO and the governments of the day who truly don't seem to give a rats a**e about the citizens of the UK at all.

For the current state of affairs you may wish to talk to the blessed St Tony of B'Liar, as it was he and his government that decided that the FCO should become more business orientated and charge outrageous fees (decided upon in the UK) for services rendered. This brand new tradition was carried on by the one eyed Scottish gold seller * ( “Mr Bean progessing to Mr Has-Been” – another beauty from Vince Cable) and pepetuated by Big Dave (we are all in this together) Cameron and the current money grabber sorry Chancellor George Osborne who can find his way into anyones deepest pockets.

An interesting collection of nicknames for Gordon Brown *

https://lightwater.wordpress.com/2008/04/27/gordon-brown-tops-the-list-of-prime-ministerial-nicknames/

[evadgib]

My favorite was when author Fred Forsyth described Brown as having " the charisma of a cape buffalo"!

Back on topic: FCO would prefer some aspects of notary work to be conducted locally by lawyers etc, not least because it is the host nation that require the end product & not HMG. This would be cheaper for us & more convenient, particularly for anyone outside of Bkk.

[jpinx]

To that end - Thai immigration could specify a requirement for a letter notarised by a Thai lawyer.

[evadgib]

They have, THB 65k or more coming in per month.

[Jip99]

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Still to do with UK pensions but relevant to Thailand.

I had an email from the RBL today referring to the letter of confirmation of pension details provided by the UK embassy.

WEF 23rd March 2015

From 23^rd March 2015 British nationals requiring

• Consular letter confirming pension/income for retirement visa in Thailand
• Legalising a signature or seal

Will need to apply for this service by post.

Letter confirming pension/income for retirement Visa

Information about this service including how to apply by post can be found at www.gov.uk/notarial-and-documentary-services-guide-for-thailand

(Scroll down the document to find the relevant section)

It seems that now you are no longer permitted to go to the embassy first thing in the morning and collect it after lunch.

You now HAVE to post it and wait a few days to get it and find out if they got it right.

What on earth is the use of the embassy anymore?

Unlike you many do not live next door to the Embassy.

I, and many others have secured a Letter confirming pension/income for an extension of stay (not a visa) by mail from the BE. A fast and efficient service which very cost effective when one lives a long way outside Bangkok.

Actually I live about 360km away near the Mae Wong national park and not next door to the embassy.

What is concerning me is that many of the services traditionally provided by the embassy are now being outsourced/hived off whatever you want to call it for the average UK citizen and their may come a time when for example to get a pension letter confirming the amounts you may have to contact the UK. It is NOT the fault of the Embassy I feel but that of the FCO and the governments of the day who truly don't seem to give a rats a**e about the citizens of the UK at all.

For the current state of affairs you may wish to talk to the blessed St Tony of B'Liar, as it was he and his government that decided that the FCO should become more business orientated and charge outrageous fees (decided upon in the UK) for services rendered. This brand new tradition was carried on by the one eyed Scottish gold seller * ( “Mr Bean progessing to Mr Has-Been” – another beauty from Vince Cable) and pepetuated by Big Dave (we are all in this together) Cameron and the current money grabber sorry Chancellor George Osborne who can find his way into anyones deepest pockets.

An interesting collection of nicknames for Gordon Brown *

https://lightwater.wordpress.com/2008/04/27/gordon-brown-tops-the-list-of-prime-ministerial-nicknames/

I am afraid that you are starting to sound like a cranky old dinosaur - no wonder the Australian's call us whingeing Poms!

You are also hijacking this thread with constant gratuitous political jibes that are of no relevance to what is happening now.

Be grateful that the British Embassy have introduced a system that allows you to remain in the comfort of your own home whilst obtaining a certification of your income.

Other outsourced services that you so deride are also working efficiently. Visa applications processed through Vfs are being decided upon in record time. The passport renewal service, whilst unnecessary clumsy for expats, is settling down and, now that resourcing in the UK is sorted out, the turnaround times are perfectly acceptable.

[jpinx]

They have, THB 65k or more coming in per month.

Cool Which immigration offices accept this letter notarised by a Thai lawyer instead of an embassy?

[billd766]

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Still to do with UK pensions but relevant to Thailand.

I had an email from the RBL today referring to the letter of confirmation of pension details provided by the UK embassy.

WEF 23rd March 2015

From 23^rd March 2015 British nationals requiring

• Consular letter confirming pension/income for retirement visa in Thailand
• Legalising a signature or seal

Will need to apply for this service by post.

Letter confirming pension/income for retirement Visa

Information about this service including how to apply by post can be found at www.gov.uk/notarial-and-documentary-services-guide-for-thailand

(Scroll down the document to find the relevant section)

It seems that now you are no longer permitted to go to the embassy first thing in the morning and collect it after lunch.

You now HAVE to post it and wait a few days to get it and find out if they got it right.

What on earth is the use of the embassy anymore?

Unlike you many do not live next door to the Embassy.

I, and many others have secured a Letter confirming pension/income for an extension of stay (not a visa) by mail from the BE. A fast and efficient service which very cost effective when one lives a long way outside Bangkok.

Actually I live about 360km away near the Mae Wong national park and not next door to the embassy.

What is concerning me is that many of the services traditionally provided by the embassy are now being outsourced/hived off whatever you want to call it for the average UK citizen and their may come a time when for example to get a pension letter confirming the amounts you may have to contact the UK. It is NOT the fault of the Embassy I feel but that of the FCO and the governments of the day who truly don't seem to give a rats a**e about the citizens of the UK at all.

For the current state of affairs you may wish to talk to the blessed St Tony of B'Liar, as it was he and his government that decided that the FCO should become more business orientated and charge outrageous fees (decided upon in the UK) for services rendered. This brand new tradition was carried on by the one eyed Scottish gold seller * ( “Mr Bean progessing to Mr Has-Been” – another beauty from Vince Cable) and pepetuated by Big Dave (we are all in this together) Cameron and the current money grabber sorry Chancellor George Osborne who can find his way into anyones deepest pockets.

An interesting collection of nicknames for Gordon Brown *

https://lightwater.wordpress.com/2008/04/27/gordon-brown-tops-the-list-of-prime-ministerial-nicknames/

I am afraid that you are starting to sound like a cranky old dinosaur - no wonder the Australian's call us whingeing Poms!

You are also hijacking this thread with constant gratuitous political jibes that are of no relevance to what is happening now.

Be grateful that the British Embassy have introduced a system that allows you to remain in the comfort of your own home whilst obtaining a certification of your income.

Other outsourced services that you so deride are also working efficiently. Visa applications processed through Vfs are being decided upon in record time. The passport renewal service, whilst unnecessary clumsy for expats, is settling down and, now that resourcing in the UK is sorted out, the turnaround times are perfectly acceptable.

I am sorry if I fail to meet with your approval but whether you like it or not I will not change nor do I care overmuch what you think about me.

I am cranky and as for political jibes the joke is on us all because no politician takes any notice.

However as a taxpayer since 1959 and still a taxpayer now I resent my freedom of choice being taken away from me with no notice.

I am also a registered elector and I will be making my feelings known on the 7th of May.

I can remember applying for a marriage visa back in 2000 when it was still possible for fiancees to be present at the interviews (not allowed now) and even before that when there were no sheets of glass between the interviewers and interviewees, when applications were dealt with by British staffers with the help of Thais to translate.

That was in the good old days when the embassy actually helped UK citizens and before politicians thought they knew better.

[Jip99]

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Unlike you many do not live next door to the Embassy.

I, and many others have secured a Letter confirming pension/income for an extension of stay (not a visa) by mail from the BE. A fast and efficient service which very cost effective when one lives a long way outside Bangkok.

Actually I live about 360km away near the Mae Wong national park and not next door to the embassy.

What is concerning me is that many of the services traditionally provided by the embassy are now being outsourced/hived off whatever you want to call it for the average UK citizen and their may come a time when for example to get a pension letter confirming the amounts you may have to contact the UK. It is NOT the fault of the Embassy I feel but that of the FCO and the governments of the day who truly don't seem to give a rats a**e about the citizens of the UK at all.

For the current state of affairs you may wish to talk to the blessed St Tony of B'Liar, as it was he and his government that decided that the FCO should become more business orientated and charge outrageous fees (decided upon in the UK) for services rendered. This brand new tradition was carried on by the one eyed Scottish gold seller * ( “Mr Bean progessing to Mr Has-Been” – another beauty from Vince Cable) and pepetuated by Big Dave (we are all in this together) Cameron and the current money grabber sorry Chancellor George Osborne who can find his way into anyones deepest pockets.

An interesting collection of nicknames for Gordon Brown *

https://lightwater.wordpress.com/2008/04/27/gordon-brown-tops-the-list-of-prime-ministerial-nicknames/

I am afraid that you are starting to sound like a cranky old dinosaur - no wonder the Australian's call us whingeing Poms!

You are also hijacking this thread with constant gratuitous political jibes that are of no relevance to what is happening now.

Be grateful that the British Embassy have introduced a system that allows you to remain in the comfort of your own home whilst obtaining a certification of your income.

Other outsourced services that you so deride are also working efficiently. Visa applications processed through Vfs are being decided upon in record time. The passport renewal service, whilst unnecessary clumsy for expats, is settling down and, now that resourcing in the UK is sorted out, the turnaround times are perfectly acceptable.

I am sorry if I fail to meet with your approval but whether you like it or not I will not change nor do I care overmuch what you think about me.

I am cranky and as for political jibes the joke is on us all because no politician takes any notice.

However as a taxpayer since 1959 and still a taxpayer now I resent my freedom of choice being taken away from me with no notice.

I am also a registered elector and I will be making my feelings known on the 7th of May.

I can remember applying for a marriage visa back in 2000 when it was still possible for fiancees to be present at the interviews (not allowed now) and even before that when there were no sheets of glass between the interviewers and interviewees, when applications were dealt with by British staffers with the help of Thais to translate.

That was in the good old days when the embassy actually helped UK citizens and before politicians thought they knew better.

I have no opinion of you, I don't know you.

I refer solely to your posts which have veered off topic because of your political bitterness.

This thread i about UK pensions and no one gives a flying fart how you choose to vote, nor that you have paid tax for 56 years!

UK pensions! If you have a gripe about the embassy then start a new topic.

[evadgib]

They have, THB 65k or more coming in per month.

Cool Which immigration offices accept this letter notarised by a Thai lawyer instead of an embassy?

You'd better take another look at #1048.

[jpinx]

They have, THB 65k or more coming in per month.

Cool Which immigration offices accept this letter notarised by a Thai lawyer instead of an embassy?

You'd better take another look at #1048.

That doesn't answer the question I posed. Which immigration offices in Thailand will accept an income declaration notarised by a thai lawyer in support of an extension based on retirement?

We all know the UK FCO want to farm out as much as possible, but the Thai immigration regulations appear to specify that the income affidavit must be notarised by the applicants embassy in Thailand.

[nontabury]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Unlike you many do not live next door to the Embassy.

I, and many others have secured a Letter confirming pension/income for an extension of stay (not a visa) by mail from the BE. A fast and efficient service which very cost effective when one lives a long way outside Bangkok.

Actually I live about 360km away near the Mae Wong national park and not next door to the embassy.

What is concerning me is that many of the services traditionally provided by the embassy are now being outsourced/hived off whatever you want to call it for the average UK citizen and their may come a time when for example to get a pension letter confirming the amounts you may have to contact the UK. It is NOT the fault of the Embassy I feel but that of the FCO and the governments of the day who truly don't seem to give a rats a**e about the citizens of the UK at all.

For the current state of affairs you may wish to talk to the blessed St Tony of B'Liar, as it was he and his government that decided that the FCO should become more business orientated and charge outrageous fees (decided upon in the UK) for services rendered. This brand new tradition was carried on by the one eyed Scottish gold seller * ( “Mr Bean progessing to Mr Has-Been” – another beauty from Vince Cable) and pepetuated by Big Dave (we are all in this together) Cameron and the current money grabber sorry Chancellor George Osborne who can find his way into anyones deepest pockets.

An interesting collection of nicknames for Gordon Brown *

https://lightwater.wordpress.com/2008/04/27/gordon-brown-tops-the-list-of-prime-ministerial-nicknames/

I am afraid that you are starting to sound like a cranky old dinosaur - no wonder the Australian's call us whingeing Poms!

You are also hijacking this thread with constant gratuitous political jibes that are of no relevance to what is happening now.

Be grateful that the British Embassy have introduced a system that allows you to remain in the comfort of your own home whilst obtaining a certification of your income.

Other outsourced services that you so deride are also working efficiently. Visa applications processed through Vfs are being decided upon in record time. The passport renewal service, whilst unnecessary clumsy for expats, is settling down and, now that resourcing in the UK is sorted out, the turnaround times are perfectly acceptable.

I am sorry if I fail to meet with your approval but whether you like it or not I will not change nor do I care overmuch what you think about me.

I am cranky and as for political jibes the joke is on us all because no politician takes any notice.

However as a taxpayer since 1959 and still a taxpayer now I resent my freedom of choice being taken away from me with no notice.

I am also a registered elector and I will be making my feelings known on the 7th of May.

I can remember applying for a marriage visa back in 2000 when it was still possible for fiancees to be present at the interviews (not allowed now) and even before that when there were no sheets of glass between the interviewers and interviewees, when applications were dealt with by British staffers with the help of Thais to translate.

That was in the good old days when the embassy actually helped UK citizens and before politicians thought they knew better.

I have no opinion of you, I don't know you.

I refer solely to your posts which have veered off topic because of your political bitterness.

This thread i about UK pensions and no one gives a flying fart how you choose to vote, nor that you have paid tax for 56 years!

UK pensions! If you have a gripe about the embassy then start a new topic.

He paid tax for 56 yrs, that in my mind,means he's entitled to be critical of the low level of service from the BE.

You yourself seem to be perfect pen pusher material.

[loppylugs1]

An organisation,a big one,something the govt. will take heed of should take up the torch,take the mantle sorta,not only for the folks that feel used and abused,but the office hours at UK BKK embassy.that need adjusting

I am sure there is one organisation that will seek and rectify this intolerable burden placed on the UK citizens whilst temporary away from home and that being The Boy Scouts of America.

Anyway after a good night that I'm sure would infuriate the moral welfare league there in blighty I am off for a bit of Welsh rarebit and a cuppa,and who knows ? a bit of the other a bit later on.

Cheers

[billd766]

@Jip99 re post #1054

This post about pensions and by association IS about politics as well.

The FCO and the embassies abroad act on the policy decisions of their political masters at the time and while they carry out policy and perhaps make suggestions they don't make the policy. The politicians do that.

It was a political decision back in1955 to change the law on pensions being paid abroad and in certain countries the upgrade is paid and in others, Thailand among them it is not.

Read here what Lord Freud and others had to say in Parliament about frozen pensions.

http://myparliament.info/Debates/lords/2015-3-11/9300

lord Freud is David Anthony Freud, Baron Freud (born 24 June 1950) is a British journalist, businessman, Conservative politician and welfare adviser and is a Parliamentary Under Secretary of State for Work and Pensions.

http://en.wikipedia.org/wiki/David_Freud,_Baron_Freud

[Jip99]

@Jip99 re post #1054

This post about pensions and by association IS about politics as well.

The FCO and the embassies abroad act on the policy decisions of their political masters at the time and while they carry out policy and perhaps make suggestions they don't make the policy. The politicians do that.

It was a political decision back in1955 to change the law on pensions being paid abroad and in certain countries the upgrade is paid and in others, Thailand among them it is not.

Read here what Lord Freud and others had to say in Parliament about frozen pensions.

http://myparliament.info/Debates/lords/2015-3-11/9300

lord Freud is David Anthony Freud, Baron Freud (born 24 June 1950) is a British journalist, businessman, Conservative politician and welfare adviser and is a Parliamentary Under Secretary of State for Work and Pensions.

http://en.wikipedia.org/wiki/David_Freud,_Baron_Freud

Yes, read that earlier in the week.

Knocking one's head against a brick wall comes to mind.

(That is not politicising Bill, that is reporting of a political event involving UK pensions - I think most of us on here despise the iniquity of frozen pensions)

[Expattaff1308]

The International Consortium of British Pensioners (ICBP)

( via Jeff Chipps)Sir Peter Bottomley, a dedicated and staunch supporter of frozen pensioners everywhere, has spoken out again on our behalf. He gave a speech in the Ways and Means on 18 March, and devoted some of it to yet another appeal to correct the wrong being done to us. You can thank him for his marvellous support by going to this link, and telling a true friend yourself.

http://www.theyworkforyou.com/debates/?id=2015-03-18b.828.1

[billd766]

The International Consortium of British Pensioners (ICBP)

( via Jeff Chipps)Sir Peter Bottomley, a dedicated and staunch supporter of frozen pensioners everywhere, has spoken out again on our behalf. He gave a speech in the Ways and Means on 18 March, and devoted some of it to yet another appeal to correct the wrong being done to us. You can thank him for his marvellous support by going to this link, and telling a true friend yourself.

http://www.theyworkforyou.com/debates/?id=2015-03-18b.828.1

I just read this link this morning and I was going to post it but you beat me.

Thanks for bringing it up. ICBP needs all our support. I urge everbody to sign up today.

After all it is OUR money that they are not paying us and is age discrimination in its worst form.

[evadgib]

Yer couldn't make it up...

http://m.bbc.com/news/uk-32000154

[jpinx]

Without getting into the precise detail -- It would appear that there's very little advantage in cashing in a pension pot, unless you have some capacity in your personal allowances. But if you have a a pension pot worth talking about - maybe giving £4k per year - that's your allowances used. So if you cash in 15% of the pot -- say £5k - you'll get taxed on the £5k payout, and then the pension will pay less as well -- sounds like a lose-lose situation ?

Or am I not reading this correctly?

[steve187]

i think people are going to take the whole pension pot, leaving no pension.

[jpinx]

i think people are going to take the whole pension pot, leaving no pension.

That would be a really daft thing to do unless you have an alternative investment opportunity that's going to beat the existing one - taking taxes and costs into consideration. The best "first world" bank rate I can find is for non-residents in NZ, paying 4.75% on a 5 year term, but unless you can extract yourself from the UK tax-system, HMG is going to want a slice of that. Then there's the hassle of setting the account up because a personal appearance is required, plus the cost of transfer and exchange. The current pension annuities might not be paying a great rate, but you don't have to touch them and they will continue till you die, not like a 5 year term deposit where you will be searching for a new "opportunity" every 5 years.

[JB300]

Without getting into the precise detail -- It would appear that there's very little advantage in cashing in a pension pot, unless you have some capacity in your personal allowances. But if you have a a pension pot worth talking about - maybe giving £4k per year - that's your allowances used. So if you cash in 15% of the pot -- say £5k - you'll get taxed on the £5k payout, and then the pension will pay less as well -- sounds like a lose-lose situation ?

Or am I not reading this correctly?

I thought 25% could be taken Tax Free or would this be added to your other income & so effectively taxed (if that takes you over the Personal Allowance).

[jpinx]

Without getting into the precise detail -- It would appear that there's very little advantage in cashing in a pension pot, unless you have some capacity in your personal allowances. But if you have a a pension pot worth talking about - maybe giving £4k per year - that's your allowances used. So if you cash in 15% of the pot -- say £5k - you'll get taxed on the £5k payout, and then the pension will pay less as well -- sounds like a lose-lose situation ?

Or am I not reading this correctly?

I thought 25% could be taken Tax Free or would this be added to your other income & so effectively taxed (if that takes you over the Personal Allowance).

I read it to say that all payments will be subject to normal income tax, so it'd only depend on your useage of allowances -- as I wrote above...

[Chivas]

Without getting into the precise detail -- It would appear that there's very little advantage in cashing in a pension pot, unless you have some capacity in your personal allowances. But if you have a a pension pot worth talking about - maybe giving £4k per year - that's your allowances used. So if you cash in 15% of the pot -- say £5k - you'll get taxed on the £5k payout, and then the pension will pay less as well -- sounds like a lose-lose situation ?

Or am I not reading this correctly?

I thought 25% could be taken Tax Free or would this be added to your other income & so effectively taxed (if that takes you over the Personal Allowance).

No..........The 25% tax free allowance is just that. Its NOT part of any annual income...............Its a "stand alone" tax free allowance for want of a better expression.

On an aside any tax you do pay on your pension pot can be reclaimed against your personal allowance IF THAT ALLOWANCE IS NOT COMPLETELY USED.......In my Case I will be able to use the entire £10,600 personal allowance as I have zero taxable income.......(my income comes from Spreads accounts which fall under the auspices of Gambling when it comes to taxation)

[jpinx]

Without getting into the precise detail -- It would appear that there's very little advantage in cashing in a pension pot, unless you have some capacity in your personal allowances. But if you have a a pension pot worth talking about - maybe giving £4k per year - that's your allowances used. So if you cash in 15% of the pot -- say £5k - you'll get taxed on the £5k payout, and then the pension will pay less as well -- sounds like a lose-lose situation ?

Or am I not reading this correctly?

I thought 25% could be taken Tax Free or would this be added to your other income & so effectively taxed (if that takes you over the Personal Allowance).

No..........The 25% tax free allowance is just that. Its NOT part of any annual income...............Its a "stand alone" tax free allowance for want of a better expression.

On an aside any tax you do pay on your pension pot can be reclaimed against your personal allowance IF THAT ALLOWANCE IS NOT COMPLETELY USED.......In my Case I will be able to use the entire £10,600 personal allowance as I have zero taxable income.......(my income comes from Spreads accounts which fall under the auspices of Gambling when it comes to taxation)

I hope you're right I'll wait to hear it from the horses mouth

[JB300]

Without getting into the precise detail -- It would appear that there's very little advantage in cashing in a pension pot, unless you have some capacity in your personal allowances. But if you have a a pension pot worth talking about - maybe giving £4k per year - that's your allowances used. So if you cash in 15% of the pot -- say £5k - you'll get taxed on the £5k payout, and then the pension will pay less as well -- sounds like a lose-lose situation ?

Or am I not reading this correctly?

I thought 25% could be taken Tax Free or would this be added to your other income & so effectively taxed (if that takes you over the Personal Allowance).

No..........The 25% tax free allowance is just that. Its NOT part of any annual income...............Its a "stand alone" tax free allowance for want of a better expression.

On an aside any tax you do pay on your pension pot can be reclaimed against your personal allowance IF THAT ALLOWANCE IS NOT COMPLETELY USED.......In my Case I will be able to use the entire £10,600 personal allowance as I have zero taxable income.......(my income comes from Spreads accounts which fall under the auspices of Gambling when it comes to taxation)

Thanks, that's my understanding also.... Let's hope it stays that way [emoji106][emoji106][emoji106]

[Chivas]

Without getting into the precise detail -- It would appear that there's very little advantage in cashing in a pension pot, unless you have some capacity in your personal allowances. But if you have a a pension pot worth talking about - maybe giving £4k per year - that's your allowances used. So if you cash in 15% of the pot -- say £5k - you'll get taxed on the £5k payout, and then the pension will pay less as well -- sounds like a lose-lose situation ?

Or am I not reading this correctly?

I thought 25% could be taken Tax Free or would this be added to your other income & so effectively taxed (if that takes you over the Personal Allowance).

No..........The 25% tax free allowance is just that. Its NOT part of any annual income...............Its a "stand alone" tax free allowance for want of a better expression.

On an aside any tax you do pay on your pension pot can be reclaimed against your personal allowance IF THAT ALLOWANCE IS NOT COMPLETELY USED.......In my Case I will be able to use the entire £10,600 personal allowance as I have zero taxable income.......(my income comes from Spreads accounts which fall under the auspices of Gambling when it comes to taxation)

I hope you're right I'll wait to hear it from the horses mouth

Dont need to hope........... I have letter from Standard Life dated 2nd March who hold one of my Pensions detailing just that,.... however was fully aware of the rules anyway

That 25% tax free allowance was available back in 1988 when one of those Policies was taken out. Its nothing new whatsoever

What has changed in last year is the availablity of the other 75% as cash subject to taxation.

[steve187]

Without getting into the precise detail -- It would appear that there's very little advantage in cashing in a pension pot, unless you have some capacity in your personal allowances. But if you have a a pension pot worth talking about - maybe giving £4k per year - that's your allowances used. So if you cash in 15% of the pot -- say £5k - you'll get taxed on the £5k payout, and then the pension will pay less as well -- sounds like a lose-lose situation ?

Or am I not reading this correctly?

I thought 25% could be taken Tax Free or would this be added to your other income & so effectively taxed (if that takes you over the Personal Allowance).

No..........The 25% tax free allowance is just that. Its NOT part of any annual income...............Its a "stand alone" tax free allowance for want of a better expression.

On an aside any tax you do pay on your pension pot can be reclaimed against your personal allowance IF THAT ALLOWANCE IS NOT COMPLETELY USED.......In my Case I will be able to use the entire £10,600 personal allowance as I have zero taxable income.......(my income comes from Spreads accounts which fall under the auspices of Gambling when it comes to taxation)

correct the first £31,785 will be taxed at 20%, the remainder at 40%, so from a tax point of view it would be better to spread over a few years.. utilizing your personal tax allowance which will increase by £200 per year for 2 years.

[steve187]

double post

[Chivas]

Without getting into the precise detail -- It would appear that there's very little advantage in cashing in a pension pot, unless you have some capacity in your personal allowances. But if you have a a pension pot worth talking about - maybe giving £4k per year - that's your allowances used. So if you cash in 15% of the pot -- say £5k - you'll get taxed on the £5k payout, and then the pension will pay less as well -- sounds like a lose-lose situation ?

Or am I not reading this correctly?

I thought 25% could be taken Tax Free or would this be added to your other income & so effectively taxed (if that takes you over the Personal Allowance).

No..........The 25% tax free allowance is just that. Its NOT part of any annual income...............Its a "stand alone" tax free allowance for want of a better expression.

On an aside any tax you do pay on your pension pot can be reclaimed against your personal allowance IF THAT ALLOWANCE IS NOT COMPLETELY USED.......In my Case I will be able to use the entire £10,600 personal allowance as I have zero taxable income.......(my income comes from Spreads accounts which fall under the auspices of Gambling when it comes to taxation)

correct the first £31,785 will be taxed at 20%, the remainder at 40%, so from a tax point of view it would be better to spread over a few years.. utilizing your personal tax allowance which will increase by £200 per year for 2 years.

Exactly what I'm going to do........Utilise every penny of my personal allowance year after year until fund is fully withdrawn effectively 100% tax free (as long as my current work/tax status remains the same)