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Readers' forum : Friendly sum

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06 December 2016

Issue: 4579 / Categories: Forum & Feedback

Tax implications of payout on winding-up of a friendly society.

A friendly society which was established about 150 years ago has recently been wound up.

My client paid annual premiums for several years. Had the fund not been wound up he would have been expecting an annual pension of about £1 000 from age 65. Instead he received a considerable lump sum of around £30 000 on the winding-up.

I would be grateful if Taxation readers could tell me what the taxation implications are of this payout.

I look forward to replies.

Query 18 895– Villager.

Reply by Lazza from LITRG

It is not possible to give a definitive answer to this question without more information on the nature of the friendly society and the pension arrangements. However the following may help guide Villager to a solution.

The first question is the nature of the society. Is it incorporated or unincorporated registered (old...

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Readers' forum : Friendly sum

© Copyright LexisNexis 2024. All rights reserved.

06 December 2016

Tax implications of payout on winding-up of a friendly society.

A friendly society which was established about 150 years ago has recently been wound up.

My client paid annual premiums for several years. Had the fund not been wound up he would have been expecting an annual pension of about £1 000 from age 65. Instead he received a considerable lump sum of around £30 000 on the winding-up.

I would be grateful if Taxation readers could tell me what the taxation implications are of this payout.

I look forward to replies.

Query 18 895– Villager.

Reply by Lazza from LITRG

It is not possible to give a definitive answer to this question without more information on the nature of the friendly society and the pension arrangements. However the following may help guide Villager to a solution.

The first question is the nature of the society. Is it incorporated or unincorporated registered (old...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4579

Categories: Forum & Feedback [1]

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