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Did anyone panic and take out 25% tax free from their pension ?
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S A
Posted: 05 December 2024 12:43:36(UTC)
#12

Joined: 17/12/2020(UTC)
Posts: 1
Hearing there may be trouble ahead for those who used their cancellation rights to return tax-free cash.

HMRC have reportedly said cancellation rights should not have applied in those instances.
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Paul V
Posted: 07 December 2024 01:08:21(UTC)
#13

Joined: 16/04/2012(UTC)
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No panic just a pragmatic decision to take my 25%. This has been passed to my kids and will be used to fund their ISAs for a few years. All still “ tax free” and political uncertainty removed/ a no brainer
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Guest on 07/12/2024(UTC), Paulafrancis on 08/12/2024(UTC)
Carl blue nose
Posted: 07 December 2024 19:34:18(UTC)
#8

Joined: 27/03/2023(UTC)
Posts: 26
D Bergman;327656 wrote:
I have not done so yet but am planning to take the 25% TFS in the next few months.
The reason for doing so soon is to gift it to my heirs as a PET, and obviously the sooner I do so, the greater the chance of my surviving 7 years.
Even if I don't survive, the gifted sum will only be subject to 40% IHT at most, rather than IHT + income tax.




Doing the same thing for the same reason.
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RT7
Posted: 07 December 2024 19:46:05(UTC)
#14

Joined: 18/12/2023(UTC)
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No need to panic.

I retired Oct 23, took my £267,500 TFLS, because I could, and I didn't want to wait for fuck wits in Govt to impose a cap, muted at £100k.

Of the £267.5k, i put £80k in ISA's, me, wife, son and daughter, same again in 2024/25 tax year, balance in Premium bonds.

Still no panic, and certainly no regrets.
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Guest on 07/12/2024(UTC), Paulafrancis on 08/12/2024(UTC), Carl blue nose on 08/12/2024(UTC), Martina on 08/12/2024(UTC)
Sara G
Posted: 10 December 2024 16:49:37(UTC)
#15

Joined: 07/05/2015(UTC)
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Sounds like no one on here is affected, but interestingly, HMRC appear to have pushed back on the concept of a cooling off period, with the possibility that either the lump sum withdrawal can't be reversed, or they won't be able to take out the full 25% in the future:

https://www.telegraph.co...ax-free-lump-sums-hmrc/

https://archive.vn/jOvTd

I suppose people really shouldn't have acted in haste, but if the government hadn't been floating so many alarming possibilities around pensions, perhaps they wouldn't have felt the need to do so.
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Guest on 10/12/2024(UTC), RT7 on 10/12/2024(UTC), Tim D on 11/12/2024(UTC)
lenahan
Posted: 10 December 2024 17:44:37(UTC)
#16

Joined: 07/12/2017(UTC)
Posts: 242
Sara G;328291 wrote:
I suppose people really shouldn't have acted in haste, but if the government hadn't been floating so many alarming possibilities around pensions, perhaps they wouldn't have felt the need to do so.


Was it the Goverment or elements of the right wing traditionally supporting Tory press that were pushing this?

Because when I was taking a deep dive weeks back I couldn't find much officially and was cautioning an Uncle against believing what he was reading in the run up to the budget. He went ahead anyway and took his PCLS because it suited him regardless.
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Sara G
Posted: 10 December 2024 18:22:35(UTC)
#18

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lenahan;328297 wrote:
Sara G;328291 wrote:
I suppose people really shouldn't have acted in haste, but if the government hadn't been floating so many alarming possibilities around pensions, perhaps they wouldn't have felt the need to do so.


Was it the Goverment or elements of the right wing traditionally supporting Tory press that were pushing this?

Because when I was taking a deep dive weeks back I couldn't find much officially and was cautioning an Uncle against believing what he was reading in the run up to the budget. He went ahead anyway and took his PCLS because it suited him regardless.


It was certainly a hot topic of discussion in the Telegraph among others, although it wasn't plucked out of the air. There seemed to be a pattern of a left-leaning think tank issuing a report on what the government could / should do, with the suggestion that it was some form of kite-flying to see how certain policy ideas might land. At the same time, the press reports also generally included quotes from financial advisors counselling caution before taking out tax free cash in an unplanned way. In any case, I don't think the media can be blamed for reporting on it.
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Guest on 10/12/2024(UTC), Coste on 10/12/2024(UTC)
Newbie
Posted: 16 December 2024 16:14:32(UTC)
#19

Joined: 31/01/2012(UTC)
Posts: 3,818
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Robert D
Posted: 16 December 2024 16:36:04(UTC)
#20

Joined: 06/11/2016(UTC)
Posts: 1,479
It never sense to me to act on pensions based on speculation in the press, especially the media that was hostile to the government and would wish to harm it by publishing scare stories such as this. Investors savvy enough to run their own pension money should have known better really - or read more balanced media reports
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Isaac J
Posted: 16 December 2024 17:32:11(UTC)
#21

Joined: 25/05/2022(UTC)
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Just a did a search of articles over the last few months. Nothing from the government even hinting at the removal of the tax free lump sum. But do you know which names kept coming up in my search? The Telegraph, Daily Mail and MoneyWeek. Take from that what you will…
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Guest on 16/12/2024(UTC)
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