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Occupational Pension payment treated as income or capital ?
Morning All !
I have a client who is aged 57 and is considering taking a lump sum payment from his occupational pension.
Having looked at CPAG pages 278 and 279 it is not clear whether the lump sum payment would be treated as capital or income, we think it would be income but if it is how long is the payment treated as income for ?
Cl. currently in receipt of I.B.J.S.A and C.T.S, living in a property they have inherited.
Hope this makes sense and thanking you for your reply in advance ! :)
Pete
One off payment is surely treated as capital?
One off payment is surely treated as capital?
Agreed.
It is treated as income for tax purposes however. The net after that is capital for benefits purposes.
If it’s one of a regular series of withdrawals then it’s possible to get messier.