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Pension release
pensioncredit
Posts: 2 Newbie
If you are male and a have a small personal pension fund at 60 years old in 2012, under £11,000, can it all be taken in a lump sum?
If so, what is the tax rate on this amount if you haven't any other income and any savings?
If so, what is the tax rate on this amount if you haven't any other income and any savings?
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pensioncredit wrote: »If you are male and a have a small personal pension fund at 60 years old in 2012, under £11,000, can it all be taken in a lump sum?
Yes but only if it is your only pension, excluding state pension.If so, what is the tax rate on this amount if you haven't any other income and any savings?
It would be taxed at the normal income tax rates after the 25% tax-free amount. So £8250 would be taxable - if it was this year your personal allowance of £6475 would also be tax free and then the rest at 20%.0 -
HMRC will usually tax trivial pension payments at the emergency rate so you will be put to the trouble of claiming back the overpayment.Trying to keep it simple...
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