CSPA members receiving their Remedy Choice are asking questions about the tax situation. There is an article on the Civil Service Pensions Website:

The HMRC Digital Service  

Your pension tax position in remedy period years may be affected due to rollback. HMRC have introduced a new digital calculator and interactive guidance, to help you identify whether you need to take any action. This can be found here: 

• Calculator / Digital Service (‘Calculate your Public Service Pension Adjustment’)
• The McCloud GOV.UK guidance collections page
• The 2015 Remedy (McCloud) Newsletter

However, members are still questioning their tax situation. We have asked the Cabinet Office for more detailed advice and they provided this:

• Arrears of lump sum are not taxable.
• Payment of pension arrears are taxable and tax will be deducted by MyCSP.
• Interest may be taxable, not taxable, or a combination. The RSS makes clear what the amount of taxable interest is. A member only needs to inform HMRC if they have a tax charge to pay (interest is paid without any tax deduction and the scheme does not supply information of interest to HMRC like banks and building societies do)
• Members may pay more tax due to being pushed into a higher income tax bracket by payment of arrears. MyCSP can supply a form giving a breakdown of arrears for each individual tax year. Members can send this form to HMRC who will reallocate income to the appropriate year and make revisions to tax due. You may need to request a form.

Tax is an individual responsibility. For many members the correct tax will have been deducted and no further action will be required.