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Panic, Got a problem, please help Drawdown Pension and Child tax credits

happyhero · 2017-05-19 12:33:58

Hi I have also put this question in the pension section but it was suggested to me to put it here too. can anybody guide me here. I researched taking a drawdown Pension and recycling before doing it and thought I had it all figured out. I was on zero income living off investments in ISA's with HL. I also have SIPP with HL…

Comments

zagfles Posts: 21,686 Forumite

19 May 2017 at 6:32PM

Yes, taxable income from any pension counts as income for tax credits, even if it's within the personal allowance. The tax free 25% doesn't. But pension contributions can be taken off your income. The £300 is a disregard for "other income" so that's why it was reduced by £300.

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