Do I have to include a tax free pension lump as part of my household income?

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JohnDoo99
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I have recently received a PR2 form from SFE and in section 3 under 'Income from pensions' it says that I should include any tax free lump sums (TFLS) I have received. I retired in November 2018 and received a TFLS from my occupational pension as part of my retirement settlement. Government information is that Household Income is all taxable income. As this payment was tax free I don't feel that this should be included in my income from pensions.
In a different SFE form, PFF2, in the section dealing with pension income it asks about income from occupational pensions but does not ask for lump sump payments included in this, however in the state pension section it does ask about this which from investigating is because this is taxable income.
Having spoken twice to SFE I have received the same answer that my TFLS must be included in my income from pensions because of HMRC regulations.
I seem to be resigned to the fact that the resulting reduction to my daughters maintenance grant is unavoidable.
Has anyone else experience of this issue and if so how did this work out for you?
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PQ
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(Original post by JohnDoo99)
I have recently received a PR2 form from SFE and in section 3 under 'Income from pensions' it says that I should include any tax free lump sums (TFLS) I have received. I retired in November 2018 and received a TFLS from my occupational pension as part of my retirement settlement. Government information is that Household Income is all taxable income. As this payment was tax free I don't feel that this should be included in my income from pensions.
In a different SFE form, PFF2, in the section dealing with pension income it asks about income from occupational pensions but does not ask for lump sump payments included in this, however in the state pension section it does ask about this which from investigating is because this is taxable income.
Having spoken twice to SFE I have received the same answer that my TFLS must be included in my income from pensions because of HMRC regulations.
I seem to be resigned to the fact that the resulting reduction to my daughters maintenance grant is unavoidable.
Has anyone else experience of this issue and if so how did this work out for you?
When did you get the lump sum? Which tax year?

If it was in 17/18 (the tax year that’s being assessed for 19/20 finance) then once you have provided your income information then you can request reassessment based on your 19/20 tax year income instead if it’s likely to be 15% (or more) lower.
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JohnDoo99
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Thanks for your reply. I received the lump sum during 2018/19. On PR2 I have to send evidence to support my estimate for 17/18 but also financial details for 18/19.

(Original post by PQ)
When did you get the lump sum? Which tax year?

If it was in 17/18 (the tax year that’s being assessed for 19/20 finance) then once you have provided your income information then you can request reassessment based on your 19/20 tax year income instead if it’s likely to be 15% (or more) lower.
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