Tax on Army Lump Sum

#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?
 
#4
CRmeansCeilingReached said:
i would imagine that would be changing the terms and conditions of service we signed up for, so it sounds unlikely.
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
20NOV1917 said:
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?
Ignore rumours.
Your lump sum is tax free, your pension is taxable - ENDEX.
G2
 
#7
magictorch said:
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.
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
agoodgrouping said:
your lump sum is tax free, your pension is taxable - ENDEX.
G2
unless md'd then pension tax free
 
#10
I'm being taxed about 50% on my lump sum



by my ex!!!!
 

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