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Posted Tue, 05 Nov 2024 16:32:11 GMT by Debbie Carter
Following the recent judgement re part time workers pension rights I have been offered membership of the Modified FPS 2006 pension scheme. This means I will be paid pension arrears of £80,976 which includes interest of £11,391. Will these arrears be taxed per the year they are received (i.e. 24/25) or can they be taxed in the year in which I became entitled to them? The scheme administrator seems to think that 'spreading' is not allowed but that seems unfair in these circumstances. Please can you let me know if I can re-allocate the payment to previous tax years.
Posted Mon, 11 Nov 2024 11:44:42 GMT by HMRC Admin 21 Response
Hi,
They will automatically be taxed in the year they are paid.
You can apply for them to be reallocated to the relevant years if this is more beneficial for you.
If so, you will need to wait until after the end of the tax year and provide in writing a breakdown of the years involved and each years payment. This should be supplied to you by the pension provider.
Thank you.

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