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Clarity on Pension Drawdown and Tax
Comments
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I can't see that anyone else has picked up that point. To my knowledge that's not the case, taking the tax free allowance makes no difference to tax on anything earned.booveedoo said:If you`re only drawing an income of £3000 a year, and that you`ve already take your 25% tax free, why on this amount (3000) are you paying 20%? £3000 is way below the threshold of £12570? Or do you pay this cos you`ve already taken the TF allowance?
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Was the £3,000 all taken at the same time ?Mortgage free
Vocational freedom has arrived0 -
That is correct, the tax free part of the pension is exactly that.Qyburn said:
I can't see that anyone else has picked up that point. To my knowledge that's not the case, taking the tax free allowance makes no difference to tax on anything earned.booveedoo said:If you`re only drawing an income of £3000 a year, and that you`ve already take your 25% tax free, why on this amount (3000) are you paying 20%? £3000 is way below the threshold of £12570? Or do you pay this cos you`ve already taken the TF allowance?0
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