Pension Tax Advice

Icenaj01

I will be drawing my State Pension later this year on my birthday and my DBS pension will also start at that time on my retirement from work. My query is with regard to how my tax will be deducted.   I will be a basic rate payer.   Will my pension provider deduct both the State and DBS pensions tax from my monthly payment with them?

Albermarle

You have your personal allowance of £12,500 ( same as you have when working ) . This will be allocated to your non state pension and the state pension amount will be deducted from that personal allowance . 
Obviously if you are still working for part of the same tax year as you start taking your pension then that complicates the situation to begin with. 

Dazed_and_C0nfused

Yes, your State Pension will be paid in full by DWP with no tax deduction but your tax code with DBS should include a State Pension deduction so you pay sufficient tax overall.

xylophone

HMRC should issue a code to your pension provider that takes account of your state pension because the state pension is paid gross.

Icenaj01

Thanks very much to all for the clarification.