BT pension tax free lump sum and SA declaration?

[1nvest]

Turned 60 this year and started receiving a pension from BT from way back (Section B) along with a lump sum that was indicated as being 'Tax Free'. Around £14K/year and £90K/lump respective type figures.

Where/how should that 'tax free' lump sum be registered (or not) on a Self Assessment?

[Alaric]

Where/how should that 'tax free' lump sum be registered (or not) on a Self Assessment?

There are no trick questions. Tax free means what it says and doesn't have to be disclosed. The monthly income will be taxed under PAYE so needs to be included as income received and as tax already paid if you are required to file a Tax Return.

[XFool]

Where/how should that 'tax free' lump sum be registered (or not) on a Self Assessment?

There are no trick questions. Tax free means what it says and doesn't have to be disclosed. The monthly income will be taxed under PAYE so needs to be included as income received and as tax already paid if you are required to file a Tax Return.

Ooh...

I remember all this from long ago, as through a glass, darkly (it was the 1990s).

I really don't know the current situation, so the tax 'form' and notes should give the details. If I remember, at the time, the "tax free" amount was capped at £30,000. You would need to check the details for today.

https://www.gov.uk/tax-on-pension/tax-free

[swill453]

I really don't know the current situation, so the tax 'form' and notes should give the details. If I remember, at the time, the "tax free" amount was capped at £30,000. You would need to check the details for today.

Are you possibly thinking of the £30,000 tax free limit on redundancy payments?

Scott.

[XFool]

I really don't know the current situation, so the tax 'form' and notes should give the details. If I remember, at the time, the "tax free" amount was capped at £30,000. You would need to check the details for today.

Are you possibly thinking of the £30,000 tax free limit on redundancy payments?

Scott.

Possibly!

I remember it all got complicated at the time - and at the time you could still go to your local Tax Office (and even they didn't know...). I do remember there was some matter of the relation between my redundancy (compulsory retirement: so redundancy payment + retirement lump sum) payment amount and the number of years I had actually been paying NI. The "tax free" amount was taxed above a certain level (£30,000?), but it had been "grossed up" so after taxation the net amount was the same to me as it would have been if it had all been untaxed. I did have to enter the details on a tax return, at the time.

Possibly this is all a distraction?

[swill453]

Possibly this is all a distraction?

I think so, the question's already been answered.

Scott.

[monabri]

You'll find HMRC will know all about your pension ( and you can confirm this by logging on to a government gateway account). If you do self assessment, the pension info will be automatically loaded into your self assessment form.

The tax free lump sum does not need to be declared as it is.... tax free.

[1nvest]

Thanks for the replies.