- Posts: 25
× Members
Capital from pension
- tigerblue
- Topic Author
- Offline
Less More
6 days 4 hours ago #297301 by tigerblue
Capital from pension was created by tigerblue
Hello
I’ve tried to search for this but no luck.
I am in receipt of IR-ESA and have previously had it reduced when my capital went over £16k temporarily. This was because of a large withdrawal from my pension pot to allow me to buy a flat.
Recently I’ve been considering making another withdrawal of a few thousand to do some jobs around my flat.
If this withdrawal brings my capital to under £5k will it impact my ESA?
Do I have to inform DWP and tax man for this smaller amount?
Thanks
Chris
I’ve tried to search for this but no luck.
I am in receipt of IR-ESA and have previously had it reduced when my capital went over £16k temporarily. This was because of a large withdrawal from my pension pot to allow me to buy a flat.
Recently I’ve been considering making another withdrawal of a few thousand to do some jobs around my flat.
If this withdrawal brings my capital to under £5k will it impact my ESA?
Do I have to inform DWP and tax man for this smaller amount?
Thanks
Chris
Please Log in or Create an account to join the conversation.
- David
- Away
Less More
- Posts: 658
6 days 1 hour ago #297310 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Capital from pension
Hi tigerblue,
I cannot see why you should have to inform " the tax man " if you spend a few thousand pounds of your savings.
You will obviously have to inform the DWP if your total savings drop below the £6000 threshold. You will need to keep all receipts related to your expenditure just in case DWP Compliance interview you to make sure that it was reasonable expenditure and not " deprivation of capital ". Of course, Income Based ESA increases as savings over £6000 are run down.
David
I cannot see why you should have to inform " the tax man " if you spend a few thousand pounds of your savings.
You will obviously have to inform the DWP if your total savings drop below the £6000 threshold. You will need to keep all receipts related to your expenditure just in case DWP Compliance interview you to make sure that it was reasonable expenditure and not " deprivation of capital ". Of course, Income Based ESA increases as savings over £6000 are run down.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Please Log in or Create an account to join the conversation.
- tigerblue
- Topic Author
- Offline
Less More
- Posts: 25
5 days 20 hours ago #297319 by tigerblue
Replied by tigerblue on topic Capital from pension
Hello David. I think you misunderstood. I’m talking of taking money from my pension which can be seen as income. I did not mean that I already have the money in savings.
Can you help?
Thanks
Can you help?
Thanks
Please Log in or Create an account to join the conversation.
- David
- Away
Less More
- Posts: 658
5 days 13 hours ago #297325 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Capital from pension
Hi tigerblue,
If you receive pension income it will be deducted £ for £ from Income Based ESA.
David
If you receive pension income it will be deducted £ for £ from Income Based ESA.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Please Log in or Create an account to join the conversation.
- tigerblue
- Topic Author
- Offline
Less More
- Posts: 25
4 days 7 hours ago #297349 by tigerblue
Replied by tigerblue on topic Capital from pension
Thanks again
This is one lump sum, not a monthly income. I thought that this was seen differently? Still income but into my savings pot which is not above £6k.
Not sure how else to describe it.
This is one lump sum, not a monthly income. I thought that this was seen differently? Still income but into my savings pot which is not above £6k.
Not sure how else to describe it.
Please Log in or Create an account to join the conversation.
- David
- Away
Less More
- Posts: 658
3 days 3 hours ago #297356 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Capital from pension
Hi tigerblue,
The title of your post on this forum is " Capital from pension ".
Then you said "I’m talking of taking money from my pension which can be seen as income"
Now you say " This is one lump sum, not a monthly income"
I think everyone reading this will be confused unless it is just me and someone else can better explain?
David
The title of your post on this forum is " Capital from pension ".
Then you said "I’m talking of taking money from my pension which can be seen as income"
Now you say " This is one lump sum, not a monthly income"
I think everyone reading this will be confused unless it is just me and someone else can better explain?
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Please Log in or Create an account to join the conversation.
Moderators: Gordon, Gary, BIS, Catherine, Wendy, Kelly, greekqueen, peter, Katherine, Super User, Chris, David