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ESA IR and tax free lump sum from pension
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8 years 1 month ago - 8 years 1 month ago #152207 by Gordon
Capital includes all savings, assets and cash so taking £5999 would almost certainly put someone over the limit.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic ESA IR and tax free lump sum from pension
tango wrote: Hi tracy
i was in a similar position to your husband and got a tax free lump sum from pension.
under the new pension rules you can take any amount you want( up to 25% tax free.)
so my advice to you would be only to take £5999 so that you remain under the £6000 threshold and pay 6000 off your debts.
i would inform dwp only when money received and send all relevant documentation to them.
You can then take the other 2000 in another tax year and pay the remainder of your debt off then.
if dwp then ask you where the other 6000 went you can send them the receipt for the debt that you paid off.
regards tango
Capital includes all savings, assets and cash so taking £5999 would almost certainly put someone over the limit.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 8 years 1 month ago by Gordon.
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- Tracy
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8 years 1 month ago #152275 by Tracy
Replied by Tracy on topic ESA IR and tax free lump sum from pension
Thanks guys such a relief it's capital. It won't be in the bank for more than 24 hours I intend paying everything off as soon as it goes in.
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8 years 1 month ago #152276 by Tracy
Replied by Tracy on topic ESA IR and tax free lump sum from pension
I'd actually be happy to pay the £1 for every extra £250 anyway just to be debt free
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8 years 1 month ago #152294 by Gordon
To re-emphasise our previous advice, please get face to face advice before you proceed.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic ESA IR and tax free lump sum from pension
Tracy wrote: Thanks guys such a relief it's capital. It won't be in the bank for more than 24 hours I intend paying everything off as soon as it goes in.
To re-emphasise our previous advice, please get face to face advice before you proceed.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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8 years 1 month ago #152335 by Tracy
Hi Gordon thanks so much I've taken a lot of advice been to citizens advice and got a financial advisor. Someone had just mentioned to me on Friday it was income not capital which caused me to come here. I've also spoken with the council etc and ESA dept but whoever you speak to there you don't get two answers the same. Thanks for replying to my thread.
Replied by Tracy on topic ESA IR and tax free lump sum from pension
Gordon wrote:
Tracy wrote: Thanks guys such a relief it's capital. It won't be in the bank for more than 24 hours I intend paying everything off as soon as it goes in.
To re-emphasise our previous advice, please get face to face advice before you proceed.
Gordon
Hi Gordon thanks so much I've taken a lot of advice been to citizens advice and got a financial advisor. Someone had just mentioned to me on Friday it was income not capital which caused me to come here. I've also spoken with the council etc and ESA dept but whoever you speak to there you don't get two answers the same. Thanks for replying to my thread.
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