magazine archive

magazine archive

Ask Tom

EU residents face UK bank account problem

Thursday 22 Oct 2020

I live in the Netherlands and currently have my drawdown pension paid into my UK bank account. However, I’ve just been told my bank plans to stop offering banking services to EU customers. What options do I have? Anonymous Tom Selby AJ Bell Senior Analyst says: This is a situation facing thousands...

Will the state pension age go up to 75?

Thursday 15 Oct 2020

I’m confused about the state pension. I know the state pension age has just increased to 66 but I’ve read stories that it could be about to go to 75. How on earth can anyone know what they will get and when?! Can you help please? Anonymous Tom Selby, AJ Bell Senior Analyst says: You are right that...

Where do I stand with tax if I gift £100,000?

Thursday 08 Oct 2020

I am 71 and have a SIPP which may exceed my £1.25 million lifetime allowance by the time I reach 75. I am considering shortly making a gift of £100,000 to my child from this pension pot. Would this: (a) reduce my tax liability at age 75 by reducing the amount of my pension pot? (b) be tax-free?...

Should I lower portfolio risk five years before retiring?

Thursday 01 Oct 2020

What are the risks to personal contribution pension pots of share prices falling and should anyone within five years of retirement do anything to reduce risk of the portfolio being insufficient? John Tom Selby , AJ Bell Senior Analyst says: Because personal pensions – often referred to as ‘defined...

Seeking help with a pensions allowance calculation

Thursday 17 Sep 2020

I’m 56, have a SIPP and want to retire in 2028, so I’ve started looking at the lifetime allowance cap. If my SIPP exceeded the current value of £1,073,100 to say a value of £1,500,000, would the 25% tax-free amount for withdrawals be based on the cap or my total pot size? Keith Tom Selby, AJ Bell...

How plausible are the rumours about tax changes?

Thursday 10 Sep 2020

I’m 45, currently a higher-rate taxpayer and self-employed. How much truth is there in the rumours of a tax raid at the next Budget, particularly that the Government is planning to scrap higher-rate pension tax relief? Does it make sense for me to maximise my contributions this year? Charlie Tom...

Would my children pay tax on inheriting my pension?

Thursday 03 Sep 2020

I’m getting my affairs in order and am thinking about my SIPP, which is currently worth just over £200,000. I want to pass this on to my two children after I die. Are there any circumstances where there might be an income tax or IHT charge on that money? Anonymous Tom Selby , AJ Bell Senior Analyst...

Can I transfer my teacher’s pension into a SIPP?

Thursday 27 Aug 2020

I have been in the Teachers’ Pension Scheme since the age of 22 and I am now 54. I know it is a very good defined benefit scheme but I would like to explore all options with it. Is there a facility for me just before I retire (likely at age 60+) to have it transferred over as a SIPP? Mark Tom Selby...

Help, I've been overtaxed on my pension

Thursday 20 Aug 2020

I read recently about people being overtaxed on pension withdrawals and think I might have some money to claim back from a drawdown payment made in July. How do I get my money back? Paul Tom Selby, AJ Bell Senior Analyst says: Unfortunately you are not alone. According to the latest HMRC data some...

How can I get my pension under control?

Thursday 13 Aug 2020

I started paying into a pension in my 20s when I worked for a phone company. I left after about a decade to join the civil service and am a member of its pension scheme, which I understand is generous. However, when I was younger I just paid in the minimum as I was prioritising other things like...