Pension and ESA

pze1

Hi, first post, I was pointed in this direction from a phone call to scope. Does anybody know how my wife's contribution based ESA could be affected by taking the 25% tax free of her pension? She's also in the support group. The remaining 75% would be reinvested in a pension fund so there wouldn't be any regular earnings but more an added income for that tax year. The money would be used to buy a car and doing some things around the house so wouldn't be added to savings for very long. Hope this all makes sense and TIA for any advice

calcotti

It would be treated as capital and capital has no impact on contribution based ESA

pze1

Thankyou very much

Ross_Alumni

Wishing you a very warm welcome to the community @pze1

Good to hear that someone from Scope pointed you our way, I hope the above information has been helpful for you.

painter

I have been on contributory ESA for many years, left work due to ill health and took a lump sum and pension. I have at last this year become eligible for my state pension. Even before I received my first mths state pension I had a letter from HRMC to inform me I would be over the tax threshold and will once again become a tax payer!!  We have though just found out that as my hubby doesn’t pay tax I can pinch some of his tax code so things may not be as bad as it sounds!!!!

wilko

@pze1, hello and welcome. As for having some of your husbands tax allowance have you claimed the married allowance if not it can be back dated a few years other wise I think you can only claim £1250 tax allowance from your hubby / partner. Every little helps.