The Chancellor’s March Budget contained some good news for those facing serious ill-health and wanting to access a lump sum from their pension.
The rules have been changed so that those who have already accessed a portion of their pension plan can now obtain a serious ill-health lump sum on the remainder which has not yet been accessed. This applies both to Defined Contribution and Defined Benefits pension schemes.
These changes mean that lump sum payments can be paid tax free when a pension scheme member under 75 has less than a year to live and has pension schemes which contain benefits which have not yet been put into payment i.e. uncrystallised benefits.
When payments are made to a scheme member aged 75 and over, the changes mean that the tax treatment is brought into line with that of lump-sum death benefits; they will be taxed in the same way as their beneficiaries would have been taxed on their death.
These changes represent a slight change of the rules and will offer valuable assistance at a difficult time.
Don’t take chances when it involves your Pension. Our Financial Advisers can give you the very best professional advice, particularly if you have ill-health. Call Logic Wealth Planning on 0808 1234 321 where we can arrange your initial appointment free of charge.