How tax is collected on flexible pension payments
If you access your pension pot flexibly, then income tax will usually be payable. Here we look at how tax is collected and some problem areas to be aware of.
If you access your pension pot flexibly, then income tax will usually be payable. Here we look at how tax is collected and some problem areas to be aware of.
Certain pension income is tax-free. This page gives an overview of tax-free UK pension income (or pension related income).
The state pension is taxable but unlike private pensions, the state pension has no tax taken off before it is paid to you. Here we look at what tax is payable on state pension payments.
On this page we look at what pension income is taxable and provide an overview of how it is taxed.
You may be able to draw money out of your defined contribution pension (also called a money purchase pension) very flexibly – as much as you like, when you like, once you have reached the normal minimum pension age. You have a great deal of control – but the rules are very complicated in many ways, ...
There are many things to think about when you start drawing a pension, as the additional income you receive can have a knock-on effect on other areas of your finances.