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Family Pension Trust

Benefits before age 75

Pension commencement lump sum

The maximum tax-free lump sum that can be taken is 25% of the fund used to provide pension benefits up to the lifetime allowance. Therefore, the maximum tax-free cash for the five years from 2006/2007 is as follows:

Tax Year Maximum Tax-free Cash
2006/2007 £375,000
2007/2008 £400,000
2008/2009 £412,500
2009/2010 £437,500
2010/2011 £450,000

Individual members may be entitled to more than this amount if pension fund protection has been granted.

Pension

Any pension taken from the fund will be treated as earned income and will therefore be liable to income tax. Pension income may be taken as listed below.