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Quote: Originally posted by Bridgelayer on 10/8/2020

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Quote: Originally posted by woodman2 on 08/8/2020

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Quote:

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You get 20% tax relief on it, so for every £100 you bang into it, you get £120 back, and you can draw all your AVC's in a TAX FREE LUMP SUM.


Grumpy git Smiley

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Are you sure that is correct ?
I did not think that AVC's were treated any differently for tax purposes than any other pension contributions.

I stand to be corrected if you know different.

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Copied from Merseyside Pensions Fund page
Link


If you take your AVC at the same time you take your main LGPS benefits, you can take up to 100% of your AVC plan as tax-free cash (as long as your total lump sums from the LGPS do not exceed 25% of the combined value of your benefits including your AVC plan, or 25% of the lifetime allowance (£257,500 for the year 2018/19), or 25% of your remaining lifetime allowance if you have previously taken payment of any pension benefits).

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