BT pension - help please

msw01

I am currently receiving my BT Pension but is being taxed at 40% if I paid this direct into my current company pension can I avoid the tax and get the full amount or would this still be seen as income so I have to continue paying tax on it ?

madeinireland_2

As far as I know yes so long as it's the income from the pension and not the tax free lump sum as I think there are recycling rules around that.

jem16

msw01 wrote: »

I am currently receiving my BT Pension but is being taxed at 40% if I paid this direct into my current company pension can I avoid the tax and get the full amount or would this still be seen as income so I have to continue paying tax on it ?

It's still seen as income and you would still be liable for tax on it.

However if you pay contributions into a pension plan you are entitled to tax relief so would gain from the contribution plus the 40% tax relief on it.

xylophone

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief