Is it possible to move my private pensions into my ISA without paying tax on 75%?

ChrisK....._3

Is it possible to move my private pensions into my ISA without paying tax on 75%?

MallyGirl

It depends on how much is in there.

Dazed_and_confused

Yes.

Subject to amounts involved.

And your other taxable income in the tax year concerned.

Spreadsheetman

Not in large amounts in one hit, you'd end up paying tax unless you have personal allowance to use up. Pensions (beyond the PLCS) are only tax-deferred.

ermine

ChrisK..... wrote: »

Is it possible to move my private pensions into my ISA without paying tax on 75%?

Yes, but it takes a long time. The 25% tax-free lump sum can be moved to your ISA, then as long as your total income from pensions + employment is less than the personal allowance of currently £11,850 then you can do this tax-free.


Most people will have to accept paying some tax on their pension unless their running costs are very low or they have massive savings elsewhere Even if you pay basic rate tax on all your pension for some reason, however, the 25% tax-free lump sum still means you gain about 5% on what you would otherwise have paid in tax if saved it while paying basic rate tax.

Dazed_and_confused

Pensions (beyond the PLCS) are only tax-deferred.

Going off the threads on here I think that is moving towards the taxable element being increasingly tax free.

Not everyone can manage it but there is a common theme of early retirement with DB or main DC pension not being taken. And the income void for 5-10 years being filled by the careful emptying of a separate DC pot.

Spreadsheetman

Dazed_and_confused wrote: »

Going off the threads on here I think that is moving towards the taxable element being increasingly tax free.

Not everyone can manage it but there is a common theme of early retirement with DB or main DC pension not being taken. And the income void for 5-10 years being filled by the careful emptying of a separate DC pot.

Only because the personal allowance has got quite high e.g. £12,500 next year means that £16,666 could be drawn using the 25% tax free element. Two people on that gives a substantial household income with no tax paid.

Paul_Herring

ChrisK..... wrote: »

Is it possible to move my private pensions into my ISA without paying tax on 75%?

If the amounts you withdraw (combined with any other income) are below your tax free allowance in the tax years that you withdraw it, yes.

If the 75% (plus any other income) is above your tax free allowance, and you want to withdraw it in one go, the answer is simply no.

Andy_L

The ISA limit is £20k pa so that limits you ability to put it into the ISA at that end of the chain

etienneg

Nobody has asked the obvious question, which is why you want to do this? If you don't want to spend the money, leave it in the pensions. There's no advantage in having it in an ISA over having it in pensions.

Having said this, I accept that if you do not use up all of your personal tax allowance you may want to withdraw money each year just to do so (as has been said by others), but that is likely to be a small fraction of your total pensions (I note you use the plural). I may be wrong, but I think your question was not about small amounts but the totality of your pensions. I can't see why you want to do this.

Albermarle

There's no advantage in having it in an ISA over having it in pensions.

For most people this is correct.
However there is an advantage if there is a possibility of reaching the LTA at some point . If you have large DC pot(s) you can extract the tax free cash and put it into an ISA ( max £20k pa ) for a few years . It still counts towards the LTA but future growth will then be outside the pension .
One downside to this is that the ISA will add to inheritance tax liability whilst the pension will not