How is tax taken from first annual allowance lump sum

squirrelpie

meadow2018 said:

Sorry I made a mistake on the tax code but still paid 20% on some of the payment then 40% on most of the payment.  It was in April so beginning of the tax year.

Annoyingly, the time of year doesn't matter. Even if you'd got the payment in March they would still multiply it by twelve (=divide the bands by twelve) to find out how much tax to apply, even though there are no more months in the tax year. Grrr!

Dazed_and_C0nfused

squirrelpie said:

Dazed_and_C0nfused said:

BR month 1 would be 20% tax on the whole payment even if it was a million pounds.

No. The BR just means that there's no allowance to apply before starting the tax calculation and that it starts at the bottom of the range. But it can go as high as necessary.

That would be code 0T, not BR.  BR literally means basic rate.

xylophone

See link above and 
https://adviser.royallondon.com/technical-central/pensions/benefit-options/emergency-tax-and-lump-sum-withdrawals/