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Inheriting a pension fund
Comments
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FatherAbraham wrote: »This is incorrect. Different parts the taxable income may fall into different tax-rate bands.
You're wasting your time, old chap. People here keep parroting "marginal rate" without understanding what it means (or what it would mean to an economist or an engineer or a member of any other mathematically literate profession).
Who can have started this abomination? Accountants? HMRC? The sort of people who say "inflection" when they mean "turning point"? Who can say?Free the dunston one next time too.0 -
You're wasting your time, old chap. People here keep parroting "marginal rate" without understanding what it means (or what it would mean to an economist or an engineer or a member of any other mathematically literate profession).
Who can have started this abomination? Accountants? HMRC? The sort of people who say "inflection" when they mean "turning point"? Who can say?
You're right, of course.
Even the mighty Merryn Somerset Webb in the FT did it a week ago ("The Bank of Mum and Dad risks going out of business"), so there's no hope for the rest of us.
Perhaps there are no UK taxes left which apply at marginal rate any more.Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
FatherAbraham wrote: »Perhaps there are no UK taxes left which apply at marginal rate any more.
If you defer the old-style state pension and then take your reward as a lump sum, you pay your marginal income tax rate on the lump sum. No other example springs to mind.Free the dunston one next time too.0 -
If you defer the old-style state pension and then take your reward as a lump sum, you pay your marginal income tax rate on the lump sum. No other example springs to mind.
Exactly. The "marginal rate" is not fixed regardless of income - the extra income is added into total income so may itself alter the marginal rate if it takes you into a higher tax band.
If your income is exactly the tax-free allowance your marginal rate would be Nil. Earn another £1 and your marginal rate beomes 20%.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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