Aviva Income Drawdown Plan (CAS-53852-B5F7)

Ombudsman’s Determination

Outcome

I do not uphold Mr A’s complaint and no further action is required by Aviva.  

Complaint summary

Prior to his decision to close the Plan, the entirety of Mr A’s funds had been held in cash. He chose to receive the full value of £74,923.49 as a lump sum payment in the tax year 2019/20. He has complained that this resulted in him being liable for higher rate income tax. 

Mr A said that Aviva’s failure to include a tax breakdown with the quotation provided for his income payment, led him to a decision that was not in his best financial interest. Had he been aware that he would be liable for higher rate income tax, he would not have chosen to receive the payment in this way.