Will the Budget introduce Tax on Lump Sums

[MandaC]

There is talk in the that the budget will introuce a tax on the lump sum that was previously tax free(talk of 17%, I think?)

I know someone who is due to draw down anytime now and they were sent a letter by their broker that this may happen and that it may be advisable to draw down prior to Budget.

As a result, person signed up today.

Any thoughts?

 

[becky]

I fully expect it in the public service. I heard something about it being effective from 1st Sept and this will help reduce numbers in cases where people have 40 years and are over 60. I know 2 who would fall into this category and they said they would have to see what the figures were first.