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Posted Wed, 03 May 2023 09:52:55 GMT by Wini
Hi. I am entitled to a refund of my WPS contributions on final retirement from Civil Service. Is this payment subject to tax please and at what rate? It does not form part of my pension or lump sum. Thanks
Posted Wed, 10 May 2023 12:37:30 GMT by HMRC Admin 32

If you are unmarried throughout your service you are entitled to a refund of WPS contributions when your pension comes into payment. If you partially retire and claim your pension then the refund of WPS contributions will not be paid until you take full retirement.  

Getting your pension

Thank you.
Posted Fri, 12 May 2023 07:27:40 GMT by Wini
Hi. Thanks for the reply. I know I am entitled to refund of WPS. What I need to know is whether HMRC will tax the refund and if so how is tax applied? Thanks.
Posted Thu, 18 May 2023 16:40:17 GMT by HMRC Admin 10
As the refund should be part of your lump sum, this should not be taxable.
Posted Wed, 31 May 2023 09:02:06 GMT by David Balls
Hi, what is the rate of interest that is applied to the refund of widows contribution at retirement?
Posted Thu, 01 Jun 2023 13:10:44 GMT by HMRC Admin 8
Basic rate of 20% should be applied.
Thank you.
Posted Thu, 01 Jun 2023 13:29:55 GMT by David Balls
HMRC Admin 8 - the classic section of CSP has a refund of widows contributions at retirement if unmarried for all or some service in the scheme. There is a rate of compound interest applied to the contribution amounts paid. I was looking to understand what defines the rate i.e. is it Bank of England base plus X. I wasn't referring to the tax rate applied on a refund of contributions for short service. Please could you advise. Thank you
Posted Wed, 07 Jun 2023 07:15:06 GMT by HMRC Admin 19

You will need to contact the pension provider for this information.

Thank you.

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