Pensions and tax code

banjodog

I have a number of company pensions and a SIPP.
On retirement how is my tax code personal allowance applied. Is it just applied to one pension?

BoGoF

Depends how much they will beand if biggest one enough to utilise personal allowance. Will you be retiring at or before state pension age? State pension will be deducted from your personal allowance.

Silvertabby

As above.

As an example, before Mr S reached SPA he had 3 pensions. His main one is over the personal tax allowance, so his tax code was applied to that one. His 2 smaller pensions were both taxed at BR.

Now that he is in receipt of his State pension, his main pension tax code has been reduced in order to take the tax due from his State pension. His 2 smaller pensions are still BR.

This should all be done automatically, but it wouldn't hurt to speak to HMRC just before you retire, just in case there are anomalies on your records.