Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum : Pension plan

17 October 2017
Issue: 4620 / Categories: Forum & Feedback

Tax treatment of a CETV on drawing a pension at 55.

I am 50 at the end of this year and was lucky enough to be in a defined benefit scheme which pays an unreduced pension at 50 should I be made redundant which I was a few months ago.

I have individual protection 2016 at around £1.1m. My accrued benefits are now £1.2m; hence there will be a small ‘extra’ tax bill as I begin to take the pension at the end this year.

However I have a cash equivalent transfer value (CETV) of about £2.7m so I am considering a transfer (and will be taking financial advice) but I cannot touch this money until I am 55.

How is the CETV (and any accumulated added value over the next five years) treated when I start drawing a pension at 55?

Hopefully readers can help with this.

Query 19 056– Premature Pensioner.


Reply by Charlotte...

Only subscribers may read the full article

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon