I’m about to draw down from my 75% remaining pension having taken my 25% lump sum Will I pay tax?

Scotty62

If I limit my draw down so that my total income this coming tax year is below the £12k limit will I still have to pay tax on monies removed from the remaining 75% within my pension.
In other words are you liable irrespective of your total income or will tax be taken by the pension provider which if I remain below personal tax levels I will need to reclaim?

xylophone

If your only income is the money drawn down from your pension and remains under your personal allowance, then no tax is due.

If you take a regular monthly income, then a tax code will be issued to the pension provider.

If you take a lump sum, it is possible that tax would be deducted but it should be possible to reclaim from HMRC.

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

penners324

Have you included the state pension in your calculations? This is deemed taxable income as well.

xylophone

Have you included the state pension in your calculations? This is deemed taxable income as well.

This is indeed the case.

Prompted by your response, I had a quick look at much earlier posts from OP.

https://forums.moneysavingexpert.com/discussion/5907475/section-32-help/p1

He was 62 in 2018 and so must be at or around SPA, although he may be deferring the SP.

Presumably he still has the S32 with Aegon (though he may not have accessed it).

The pension from which he proposes the drawdown is the Standard Life product to which he referred  earlier?