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Pay less tax when withdrawing money from stock platforms?
Comments
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No, a pension has to stay as a pension, until you reach the age you're allowed to withdraw from it (in your late 50s). When money comes out of it after that, 25% is tax free; the rest is counted as income, and subject to income tax.LouP25 said:
Will it be legal to move my small pension pot to ISA, after I invested it for 2+ years, so it increases a bit? It wasn't taxed coming in, and won't be taxed coming out of ISA. Is it legal?DiamondLil said:Money you pay into a SIPP or other type of pension is untaxed going in, i.e. pension contributions are deducted from your gross income before income tax is calculated, and taxed when drawing it out. Money you pay into an ISA is from taxed income, i.e. tax has been paid on the money when you were paid it, and the money is not subject to tax when drawing it out of the ISA.2 -
got it, thank you so much!0
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If you start another job and have a new pension , you can leave the old pension as it is ( to hopefully slowly grow) or you could transfer it into your new pension.LouP25 said:got it, thank you so much!
So as above you can not transfer a pension to an ISA or some other investment account , but you can merge pensions together quite easily .1 -
No, you can't move a pension to an ISALouP25 said:
Will it be legal to move my small pension pot to ISA, after I invested it for 2+ years, so it increases a bit? It wasn't taxed coming in, and won't be taxed coming out of ISA. Is it legal?DiamondLil said:Money you pay into a SIPP or other type of pension is untaxed going in, i.e. pension contributions are deducted from your gross income before income tax is calculated, and taxed when drawing it out. Money you pay into an ISA is from taxed income, i.e. tax has been paid on the money when you were paid it, and the money is not subject to tax when drawing it out of the ISA.Remember the saying: if it looks too good to be true it almost certainly is.1 -
Thank you all so so much! This forum is definitely where my pension/isa education begins
I wish I had a degree in this, it's truly a useful necessary stuff. 1
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