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My mum took early retirement about 3 years ago as my dad retired too she is 62yr old and isn't able to claim her state pension yet she has worked over 35yrs, she had 2 small works pensions and took one of them just after she retired taking a lump sum of around £10000 and monthly payments of £130. the other pension she had has changed hands and its been fine sofar but the last month it lost £300 (it was like a stock-shares type from what ive seen) anyway I told her to cash it in if its starting to lose. There was a figure of around £12300 but when it was transferred only £9600 came, ive phoned the pension company to ask why and they said £2800 (roughly) was taken for tax which I thought was too much. ive phoned HMRC and they couldn't give me a straight answer and maybe wait till the end tax year to see if its adjusted.
The previous pension wasn't taxed as far as I can remember and ive been on www.which and tried there tax calculator which her yearly earning which is £1560 as shes not claiming or working and it says if you cashing £12300 you pay no tax. I'm a bit stumped with this, any ideas if its right?
The previous pension wasn't taxed as far as I can remember and ive been on www.which and tried there tax calculator which her yearly earning which is £1560 as shes not claiming or working and it says if you cashing £12300 you pay no tax. I'm a bit stumped with this, any ideas if its right?