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a pile of post-it notes, the top one reads 'LUMP SUM PAYMENT' in back ink. next to this is a calculator
Updated on 6 April 2026

Tax on deferred state pension lump sums

This page explains what tax is applied to a state pension lump sum, which you might receive if you reached state pension age before 6 April 2016 but chose to defer (that is, delay or put off) receiving your state pension until a later date.

a person holding a piggy bank and inserting a card with the words 'STATE PENSION' into the piggy bank
Updated on 6 April 2026

Putting off (deferring) claiming the state pension

Many people claim their state pension as soon as they reach state pension age. But you have the option of deferring your pension. State pension deferral means that you delay claiming, or stop receiving your state pension, until a time that suits you. 

a pink piggy bank wearing glasses, sat next to a calculator.
Updated on 6 April 2026

Tax on the state pension

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.

a sheet of white paper with the words 'STATE PENSION' typed on it, next to this is a glass jar of coins tipped onto its side, a few of the coins have fallen out onto the paper, a person is typing on a calculator at the right hand side.
Updated on 6 April 2026

National Insurance and the state pension

National Insurance is very important for the purposes of claiming the state pension. On this page we look at how your National Insurance record plays a part in your entitlement to this state benefit later in life.

7 wooden tiles spelling out the words 'TAX FREE', a calculator and a magnifying glass.
Updated on 6 April 2026

What pension income is tax-free?

Certain pension income is tax-free. This page gives an overview of tax-free UK pension income (or pension related income).

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