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Transfer and tax query

  • vicky
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12 years 7 months ago #92019 by vicky
Transfer and tax query was created by vicky
Hi, I'd like to thank B&W as thanks to their invaluable guides I was recently transferred from IB to the WRAG(CB) group without the dreaded medical.

I've asked for a reconsideration as I believe I qualify for the support group. As with lots of you what was written on the TL54 form significantly contradicted what I had put on my ESA50 although it did say that a return to work was unlikely.

My query is that as I have a small pension because I had to leave work on health grounds I've now been sent a form to say it will be taxed. I'd been on Incapacity benefit for approx 16yrs and so never paid tax on it previously. I understood from info here that there should be transitional protection for people in this position and so I shouldn't be paying tax. Does anyone know if this it right and if so would I take it up with the DWP or tax office?

Thank you everyone who contributes to the main site and the forum, you offer such invaluable help and support and good wishes to everyone struggling in any way.

By the way, my esa50 went in on may 31st, they didn't ring me- just sent a letter dated 25th july to say I qualified for the WRAG group. I had a letter for an interview with the 'Adviser' but had to postpone it due to medical tests to it's now in november. (S yorks area)

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12 years 7 months ago #92023 by Gordon
Replied by Gordon on topic Re:Transfer and tax query
Vicky

Congratulations on the award.

Unfortunately, the tax exemption that some IB claimants were eligible for was not carried forward into ESA, so your ESA(CB) is now liable to tax, and I suspect as a result of this you have now used your personal allowance and as a consequence are now liable to pay tax on some or all of your pension payments.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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