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Written question asked by Gregory Stafford (Conservative) on Thursday, 5 March 2026, in the House of Commons. It was due for an answer on Monday, 9 March 2026. It was answered by Satvir Kaur (Labour) on Tuesday, 28 April 2026 on behalf of the Cabinet Office.


Civil Servants: Workplace Pensions

Question

To ask the Minister for the Cabinet Office, whether he has made an assessment of the potential tax implications for recipients for civil of service pensions due to Capita delays with payments.

Answer

The Cabinet Office acknowledges the potential tax implications regarding pension arrears. For the vast majority of members, receiving arrears will not result in a higher tax liability as they will remain within the same tax band across the relevant years. However, where an arrears payment causes a member to move into a higher tax bracket in the year of receipt, individuals may request a schedule from the scheme administrator (Capita) to submit to HMRC.

This schedule allows HMRC to assess the tax on an accruals basis, spreading the income back to the years in which it was due to ensure the member pays the correct amount of tax.


Secondary information

Type
Written question
Reference
118464
Session
2024-26
Related items
Cabinet Office: Written Questions
Friday, 10 April 2026
Written questions
House of Commons
Transferred
Yes
Subjects
Civil servants Workplace pensions Taxation
Link
View this Written question on www.parliament.uk