Pension query

[I`m Ron Burgundy?]

Forgive me if this is mentioned elsewhere as I cant seem to find it; I have a question on pensions.

As I understood it after 22 years you get a tax fee lump sum and a monthly amount which is taxed at the appropriate rate. I was under the impression that if you commute the full amount and receive a larger lump sum and lower monthly amount the entire lump sum is tax free?

I was told that this has now changed and as Apr 1st this year the commuted difference is now taxed, does anyone know if this is correct? I'm going to enquire through the correct channels but a short answer would be appreciated for the moment if anyone knows.


Cheers

 

[busby1971]

I hope not.

I hope not.

As far as I know the whole lump sum whether commuted or not is tax free, if it is not then it's probably not worth commutting. There have been a few new rules come in with regards maximum commutation and such like but last I heard our pensions are generally not that high to be affected.

rafcom.co.uk should have some gen on this.

 

[I`m Ron Burgundy?]

Thanks, I've had a look around and contacted the JPAC who have confirmed there haven't been any changes to the commutation rules.

 

[Max Reheat]

I'm hijacking your thread because I think I'm being a total numpty who can't find the 'new thread' button.

Anyhow, with my 1st trip to Kandahar coming up I've finally decided to make a will, my question is what happens to my pension should I die in the line of duty or in any other circumstances for that matter?

 

[Tin basher]

PH have a look at this thread buddy there are some links within it that may answer your question.

http://www.e-goat.co.uk/forums/showthread.php?t=18920&highlight=pension

 

[Max Reheat]

Cheers mate, don't know why my seach didn't flag that thread up. Got a feeling of imminent doom reading that

 

[petesdragon]

So now we have a goverment and one of the Lib Dem conditions was the Tax starts at £10,000, does this mean that pensions under £10,000 will be tax free or is that wishful thinking