cashing in pension

sabredog0608

With the new ruling in April, I am thinking of cashing in my pension fund. I understand the first 25% is tax free, my question is if my pension fund and my salary take me over the 41k limit, do I pay 40% tax on all the income or just what is over the 41k limit.

xylophone

http://money.aol.co.uk/2015/01/20/new-pension-rules-how-to-avoid-a-huge-tax-bill/


http://www.thisismoney.co.uk/money/pensions/article-2838138/Pension-freedom-tax-trap-unwary-avoid-shock-bill.html

may be worth a look.

pinkforfloyd

It very much depends on how big your pension pot is and how much you will earn for tax year 2015/16. If you give some numbers it can be calculated.

atush

And what you will live on when you retire should you pull it all out now and pay tax on it.

Just a thought.

dunstonh

You would pay 40% on the amount over. If you are in receipt of working/childrens tax credits they would be reduced as would child benefit if you went over £50k.