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Tax Liability
billyidol
Posts: 9 Forumite
Could someone offer advice please on what the tax liability would be on a pension withdraw.
I will be 55 on a few months and intend to take 25% tax free from my DC pension in flexible drawdown facility. The current value is £240,000 and intend taking £60,000.
I’m currently working with a Salery of £52,000 being a higher rate tax payer.
Assuming I take the money from my pension pot will this mean it is added to my PAYE tax with the £52,000 salery and I pay more tax than I currently do with just my salery ?
Many thanks.
I will be 55 on a few months and intend to take 25% tax free from my DC pension in flexible drawdown facility. The current value is £240,000 and intend taking £60,000.
I’m currently working with a Salery of £52,000 being a higher rate tax payer.
Assuming I take the money from my pension pot will this mean it is added to my PAYE tax with the £52,000 salery and I pay more tax than I currently do with just my salery ?
Many thanks.
0
Comments
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The clue is in the phrase "tax free". So you'll be glad to know,there's no tax.
Do not take 1p more than the 25% or there are consequences on putting money into your pension after that.0 -
There is no tax liability. 25% tax free.0
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Many thanks AnotherJoe & anselld0
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