How much can I withdraw from a private pension without paying tax?

QrizB

Qyburn said:

SarahB16 said:

MallyGirl said:

as a non earner you can put the lot into drawdown - if it is a modern DC pension that supports such an activity - and withdraw the 25% tax free (£8750) plus the PA of £12,570 = £21,320 

Could I ask how this differs to taking £16,760 per annum?    

The £16,760 can be repeated every year, £4,190 tax free and £12,570 taxable.

The £21,320 is a one-off, no more tax free in any subsequent year. Better if you need more in the first year I guess.

OP wants to buy a car, so they could choose a combination of TFC and drawdown to match the cost of the vehicle.
Or they could just take the maximum and invest any surplus outside of their pension.

Steve_666_

IF you do this in March, I think the tax will be taken correctly, no need for HMRC to correct

molerat

Steve_666_ said:

IF you do this in March, I think the tax will be taken correctly, no need for HMRC to correct

Not if they have never drawn from the pension before, no tax code will be in place so 1257LM1 will be used with only £1049 allowance, the same as taking a first dip any time of the year.