Overdue children’s pension payments - tax implications

[ataxingtime]

My dad died many years ago when I was a child.
A pension scheme administrator has recently contacted my brother and advised that we are both possibly due a death in service payment and children’s pension payments.
We’ve sent over the requested documentation and had confirmation that we are due these payments, with amounts to be confirmed next week.
However, my brother has warned me to be prepared to be taxed on the child pension sum, and i am at the very threshold of my current tax bracket, so it will knock me into the next rate and that I may get a bill next tax year. My brother will also be heavily taxed (granted we don’t know what the overall sum will be be).

Is there any way to challenge this, considering these pension payments should have been paid 25-30 years ago?

Any advice appreciated as anything tax and pension related always baffles me.

Apologies for weird formatting in first half my post. I can’t edit that.

Thanks.

Yup, it’s all sooooo unfair 🤦‍♀️

anyway it looks like the information is there and you will pay the right tax based on when it should have been given to you.

so good news

The fact that he was your stepfather throws up other issues which determine whether you can benefit or not. Were you still living with him after your mother died?

Pay it into a pension and get the tax back that way.

I assumed it would too, but the trustee seems to have accepted the circumstances and has confirmed that my brother and I will receive equal shares.

Yes, he worked away a lot, so we were cared for by others at times, but I lived with him when he was home.

I missed this @Boreded

Are you in agreement that I should just be grateful and accept what I’m given, rather than challenge it?

Wouldn’t this be classed as inheritance tax though and not income tax?

which I had thought both of these types of inheritance are exempt and paid straight to the beneficiary’s and not part of any estate.

No, see my next message