Small Pots

The 2014 budget announced as from 27th March 2014, an increase in the ‘small pots’ limit to £10,000 (and maximum of 3 pots) and the triviality limit increase to £30,000.

Providing clients are age 60, 25% Pension Commencement Lump Sum could be taken, with the balance being taxed at their marginal rate of income tax.

As of 6th April 2015, it is proposed that clients can access their whole fund, again 25% PCLS payable and the balance is taxed at the client marginal rate.

This calculator shows the amount of lump sum (and tax) that will be paid if;

a. Client uses the small pots and triviality rules in 2014/15 together with the balance being taken in 2015/16, compared to

b. taking the whole fund in 2015/16.