pension tax,

lyndarling

I am getting a lump sum from a pension, as it was only going to be about £100 a year. The amount is £2106, does anyone know how much tax ii will pay on this ? Thanks

jem16

lyndarling wrote: »

I am getting a lump sum from a pension, as it was only going to be about £100 a year. The amount is £2106, does anyone know how much tax ii will pay on this ? Thanks

25% will be tax-free. The remainder will be taxed as normal income so it depends on what other taxable income you have.

lyndarling

I will be getting £134 a week state pension, and £111 a week in wages

Wilkins

If the lump sum is from a DB pension then it should be entirely tax free. If you are withdrawing cash from a DC pension pot then you can withdraw 25% tax free. Your existing income will not affect this, though it will affect the taxation on the pension itself.

sleepless_saver

I make it £315.90 tax. (75% of £2106 taxed at 20% as other income takes you above £10000 personal allowance) - assuming it's a DC pension.

lyndarling

Sorry, but what is a DC pension ?

Annie1960

lyndarling wrote: »

Sorry, but what is a DC pension ?

Defined Contribution pension, where you have a pension pot.

This contrasts with a DB (Defined Benefit) pension, also known as a final salary pension, or an average salary pension.