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esa /25%tax free cash from my pention

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5 years 7 months ago #236924 by stephen
esa /25%tax free cash from my pention was created by stephen
hi I am on esa and I am in a support group I am 55 years old and my 25%tax free cash came though from my pension it was £23.000 lump sum will this affect my esa if so how
do you know what documents will I have to send off if any
I have agreed to a drop down pension I do not have any of the cash left as I was in so much debt
I am really worried as a compliance officer is ringing me to conduct a interview with me
please help

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5 years 7 months ago #236931 by Gordon
Replied by Gordon on topic esa /25%tax free cash from my pention
sinbad

If you are only receiving Contribution Based ESA then a one-off payment should not affect your ESA(CB) and should be treated just as capital/savings.

If you are receiving Income Related ESA in part or in whole then the following rule applies.

Asset and davings rule for ESA(IR)

Gordon

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5 years 7 months ago #236945 by stephen
Replied by stephen on topic esa /25%tax free cash from my pention
hi I am income related
do you know what documents I need to send in
do you know when they will take it back to I recived it in june

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5 years 7 months ago #236948 by Gordon
Replied by Gordon on topic esa /25%tax free cash from my pention
sinbad

I would expect them to want to see the pension documents and in particular the one covering the payment, bank statements for the periods immediately before the payment and since.

If the payment was made in June, then there will be a recoverable overpayment of your ESA(IR) from the day you received the pension payment.

Gordon

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5 years 7 months ago #236950 by stephen
Replied by stephen on topic esa /25%tax free cash from my pention
hi Gordon I will be getting a phone call from a officer on Monday 16th
hope they wont want it all back in one hit

sinbad

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5 years 7 months ago #236953 by Gordon
Replied by Gordon on topic esa /25%tax free cash from my pention

sinbad wrote: hi Gordon I will be getting a phone call from a officer on Monday 16th
hope they wont want it all back in one hit

sinbad


It may depend on whether you are still entitled to any ESA(IR) after you have cleared your debts, there are limits on how much the DWP can deduct from your payments.

Be aware, you may also be asked to justify the disposal of the pension payment, as an example, clearing a mortgage early may be seen as unreasonable and you could be considered as still being in possession of the money, this is known as Deprivation of Capital.

Gordon

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