Paying tax on pension

mrkb

Hi there,

Is there any way at all possible (legally) to avoid paying the 40% tax when withdrawing a full pension amount?

Thanks

Aegis

mrkb wrote: »

Hi there,

Is there any way at all possible (legally) to avoid paying the 40% tax when withdrawing a full pension amount?

Thanks

You could retire abroad to a lower tax environment and stay out of the country for long enough that you don't get caught by the temporarily non-resident rules. Aside from that, no, not without structuring your withdrawals to fall below the higher rate threshold (i.e. not withdrawing the full amount right away).

dunstonh

Is there any way at all possible (legally) to avoid paying the 40% tax when withdrawing a full pension amount?

Move to Portugal.
Dont draw the money and do something more sensible instead.