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Posted Mon, 15 Apr 2024 19:58:39 GMT by Alyson Jones
Hi, I will be taking voluntary redundancy and have to take my LGPS pension straight away. I believe that I can have up to £30,000 tax free redundancy payout. I will actually receive around £21000. If I take the maximum lump sum from my pension, around £36000. Will all that be tax free as well or is there a maximum amount of combined redundancy and pension lump sum?
Posted Tue, 23 Apr 2024 10:36:36 GMT by HMRC Admin 8 Response
Hi,
The redundancy exempt amount only applies to the actual redundancy payment and not the pension lump sum. you would need to check the conditions on your lump sum to see if any of this is tax free or not.
Thank you.

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