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WHY YOU NEED TO GET ADVICE ABOUT YOUR PENSION AND TAX LIABILITY
Posted on 09/05/2011
Dear Colleague
As you are all aware, on 21st April 2011 the Government Actuaries Department figures changed and there is a possibility that Officers may find themselves in a position where their maximum commutation is in excess of what is allowed under the 25% rule, making them liable to tax on the excess. The figure first mentioned was 40% but then the figure of 55% was identified and more recently 70%. The actual rate of taxation is 55%. This consists of taxation at 40% plus an Individual Unauthorised Surcharge payment of 15%.
Now the sting in the tail
There is a potential for a further 15% surcharge, imposed by the Inland Revenue on the Pension
Administrators, being passed on to the Individual Officer, therefore giving the individual a tax liability of potentially 70% on the excess above the maximum non-taxable commutation amount.
FOR THIS REASON WE HAVE SCHEDULED SOME 1-1 SURGERIES FOR OFFICERS WITH AN INDPENDENT FINANCIAL ADVISOR – WE HAVE ADDED ADDITIONAL DATES ON 19TH MAY AND 3RD JUNE 2011 AS THOSE ON 23RD MAY 2011 & 26TH MAY 2011 ARE NOW FULL.
If you want to attend for a one to one appointment then please ring the Federation office to book a slot.
M BOTHAM
JBB CHAIRMAN
