pension tax,
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lyndarling
Posts: 27 Forumite
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
Debts
virgin £700.71
family tax credits paying back £2000
savings £136 credit union
virgin £700.71
family tax credits paying back £2000
savings £136 credit union
0
Comments
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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.0 -
I will be getting £134 a week state pension, and £111 a week in wagesDebts
virgin £700.71
family tax credits paying back £2000
savings £136 credit union0 -
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.0
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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.0
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Sorry, but what is a DC pension ?Debts
virgin £700.71
family tax credits paying back £2000
savings £136 credit union0 -
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.0
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