Pension advice , fixed term , GMA , Maturing Soon

kidmugsy

graann wrote: »

n.
I was thinking about withdrawing over a few tax years to avoid paying the higher tax rate ( along with my wages ) but was told this probably will not be possible with my money and would more than likely be given to me as a lump sum subject to tax.
Can anyone advise me , do I pay 20% tax up to £31,865 and 40 % on the remainder in the same tax year ?

(i) The £31,865 is the width of the 20% band, but you also have a personal allowance: £10k this year. So higher rate tax starts at £41,865 this year. Next year it's intended to be at £42,285.

(ii) You can avoid this problem by transferring your money to a provider who will let you draw down the money over several years.


(iii) Depending on circumstances, you may even be able to avoid tax altogether if you draw down after you stop work.