Is pension subject to tax?

MoneyTreeMe

Hi,
If someone is in receipt of a pension from a local council which they inherited from a family member, is that pension subject to tax on a self assessment tax form? The person who inherited the pension is under 30 years old and the pension is small, around £200 month.  Thank you

Dazed_and_C0nfused

I presume this is a defined benefit pension and a survivors/child pension is being paid.

In which case if would normally be taxable.

xylophone

The person who inherited the pension is under 30 years old and the pension is small, around £200 month. 

Age is immaterial. - what counts is the nature of the payment and whether or not the individual in receipt of the payment has exceeded his personal tax allowance.

Pension payments are normally regarded as income.

https://www.gov.uk/tax-on-pension-death-benefits

Take an infant  who is particularly photogenic and who is a child model/ an "actor" in films/commercials etc.

Let's say that his agency pay him £1500 a month. He is already liable for tax because his  annual income is greater than £12500.

Let's say a parent in receipt of a DB pension dies and he now inherits a pension - that pension becomes subject to tax.

Let's take another person whose only income is a pension or salary of £200 a month.

The £200 a month is taxable income but the person pays no tax because he is well within his tax free allowance.