Read our case study on income planning to find out how a company director, close to retirement and with little pension provision, can start funding for retirement.
Read More >>>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.
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.
This information relates to the Rowanmoor Pensions SSAS.