Tax on Army Lump Sum

Discussion in 'Army Pay, Claims & JPA' started by 20NOV1917, Sep 16, 2009.

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  1. Not trawled through all the prev pages to see if listed before, but duty rumour has it that the Govt is thinking of taxing the final pension lump sum. Does anyone have any knowledge on this and is it true?
  2. i would imagine that would be changing the terms and conditions of service we signed up for, so it sounds unlikely.
  3. This rumour surfaces every year or so-as CR says it is unlikely.
  4. Or just changing the tax rules that allows pension systems to pay out lump sums tax free - it's not just AFPS. Having said that, a wholesale change would also affect their captive voters in the civil service pension schemes so, I agree, unlikely.
  5. Seen an e-mail recently that said that if you want to commute your pension you need to let them know 9 months in advance. Failure to do this could mean that you will not get the money until you are already in receipt of your monthly pension. The subsequent change to the payments could be classed as illegal(?) and hence liable to a hefty tax bill. I don`t know if anyone else has seen this but it did come from the chain of command.
  6. Ignore rumours.
    Your lump sum is tax free, your pension is taxable - ENDEX.
  7. If you are on AFPS 75 and wish to commute your pension, you must now do it prior to leaving the service (as opposed to being able to do it up to 12 months after which was the case). Not seen anything about 9 months before, but assume more notice the better.
  8. unless md'd then pension tax free
  9. Has to be classed as Service Attributable under the old War Pensions scheme before your Medical Discharge Pension is classed as Tax Free
  10. I'm being taxed about 50% on my lump sum

    by my ex!!!!
  11. ouch....

    move to Thailand, your 50% will stretch a lot further there :)