Lump sum - early retirement due to ill health

[POIDH]

OH is being retired under ill health at age 51. Member of Scottish Public Pension Association scheme, is being retired under Total Incapacity benefit with pension immediately. There is a lump sum (£59k) and ongoing pension (£9.5k/year). Payment will be the next four weeks for both.

As I understand it, but struggling to find reliable information, as she is under retirement age she needs to inform HMRC asap as they will tax the lump sum unless they know this is early retirement due to ill health.

Does anyone know about this, or can point me at correct process/forms to go through?

[mike13]

I ve been through the process with SPPA, I can’t remember the form you fill out making your choices, but I can assure you no tax is taken from the lump sum.

It s clearly marked on the forms that it is an early ill health retirement.

Don’t contact HMRC, it’s taken care of from SPPA end.

Edited by mike13 on Tuesday 17th June 18:09

[POIDH]

Today's letter from SPPA says to speak to HMRC....

[mike13]

It’ll just confuse matters, let it go through process, it’s a very common occurrence for SPPA.

[POIDH]

mike13 said:

I ve been through the process with SPPA, I can t remember the form you fill out making your choices, but I can assure you no tax is taken from the lump sum.

It s clearly marked on the forms that it is an early ill health retirement.

Don t contact HMRC, it s taken care of from SPPA end.

Edited by mike13 on Tuesday 17th June 18:09

Well, they did tax it.
So we've been in contact with HMRC and been told to fill in a form to claim back...