Crosswords11 mins ago
Gifting My Pension And Tax
My mum has let her pension build up in her savings account. She wants to split the savings between her 4 kids. When she went into the bank to take out 3k in cash the bank refused her the cash. What will be the implications of a bank transfer of the money regarding the tax on the gift? Can she make 4 transfers of 3k? Will the recipient have to pay tax?
Answers
No best answer has yet been selected by Mike25. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ."no tax is payable on gifts unless she dies within 7 years then it will be treated as part of her estate for IHT on a taper relief basis" ( one of the usual suspects) .... nope - only if she exceeds the £325k limit which from the discussion is extremely unlikely.
What will be the implications of a bank transfer of the money regarding the tax on the gift? None
Can she make 4 transfers of 3k? yes
Will the recipient have to pay tax? no
As your mum is in receipt of Pension Credit (PC), depending on the reasons for withdrawing money, a Decision Maker may decide it was what is known as, "Deprivation of Capital" and treat her as having the £12,000 in her account still and it would be, "Notional Capital” as it’s not actually in her account.
Deprivation of Capital is not straightforward and I suggest you get in touch with Citizens Advice or a welfare rights advice centre to talk you through the possible consequences of making the transfers.
CBL - you asked about pension assignment ( to heirs) and a recent case - - Staveley
It is here:
https:/
Related Questions
Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.