…if your pension fund is worth less than £18,000, you can withdraw, subject to certain conditions, the whole lot in one go as a cash lump sum. Normally you can only take 25% as a cash lump sum and the remainder is used as a pension for the rest of your life.
Pension funds with a value less than or equal to £18,000 are officially known as ‘ trivial funds ‘ and you are allowed to draw out the fund in full provided the following condions are met:-
you are aged between 60 and 75
the value of all your pension fund(s) is no miore than £18,000
if you have more than one fund you must cash them all in within a 12 month period
25% of the fund(s) value can be taken tax free and the balance is taxed at basic rate tax
the pension company will allow you to do it
Need any more help? Please contact A&C Chartered Accountants on 0161 962 1855