Tax Free Allowance

pinky1978

As I am no longer working due to ill health I need to access some of my Pension to cover all the every day on going expenses everyone has.

I realise that I can take up to 25% as a tax free lump sum.

Can I then take an additional £12,570 tax free as well which is my Tax Free Allowance ?

Thanks in advance for any help you can give me.

QrizB

pinky1978 said:

I realise that I can take up to 25% as a tax free lump sum.

Can I then take an additional £12,570 tax free as well which is my Tax Free Allowance ?

Yes, although some of your tax-free allowance will be taken up by any other taxable income you've had this year. You might not have £12570 left.

The new tax year starts on the 6th of April, and your allowances re-set then.

If you have more pension questions, try the Pensions board:
https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning

pinky1978

QrizB said:

pinky1978 said:

I realise that I can take up to 25% as a tax free lump sum.

Can I then take an additional £12,570 tax free as well which is my Tax Free Allowance ?

Yes, although some of your tax-free allowance will be taken up by any other taxable income you've had this year. You might not have £12570 left.

The new tax year starts on the 6th of April, and your allowances re-set then.

If you have more pension questions, try the Pensions board:
https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning

Thank you so much for your help and the link to the pensions board (I'm afraid I'm not very good at doing these on line forum things) that was very kind of you QrizB

The only income I have had this year is from Universal Credit if that counts toward the allowance.

Many Thanks

Albermarle

pinky1978 said:

QrizB said:

pinky1978 said:

I realise that I can take up to 25% as a tax free lump sum.

Can I then take an additional £12,570 tax free as well which is my Tax Free Allowance ?

Yes, although some of your tax-free allowance will be taken up by any other taxable income you've had this year. You might not have £12570 left.

The new tax year starts on the 6th of April, and your allowances re-set then.

If you have more pension questions, try the Pensions board:
https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning

Thank you so much for your help and the link to the pensions board (I'm afraid I'm not very good at doing these on line forum things) that was very kind of you QrizB

The only income I have had this year is from Universal Credit if that counts toward the allowance.

Many Thanks

You can take the 25% tax free all at once, and then the 75% taxable part over a period of time.
OR you can take the 25% tax free in stages along with some taxable income.
You can not take just taxable income without taking some tax free first/at the same time.
However if it is an old pension it maybe not be very flexible in how you can withdraw it and you may have to transfer it.
The Government runs a website called Moneyhelper, and they offer free one hour chats over the phone to give guidance on exactly what you are asking. So worth booking an appointment.
Taking your pension | Help with taking your pension | MoneyHelper

sheramber

pinky1978 said:

QrizB said:

pinky1978 said:

I realise that I can take up to 25% as a tax free lump sum.

Can I then take an additional £12,570 tax free as well which is my Tax Free Allowance ?

Yes, although some of your tax-free allowance will be taken up by any other taxable income you've had this year. You might not have £12570 left.

The new tax year starts on the 6th of April, and your allowances re-set then.

If you have more pension questions, try the Pensions board:
https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning

Thank you so much for your help and the link to the pensions board (I'm afraid I'm not very good at doing these on line forum things) that was very kind of you QrizB

The only income I have had this year is from Universal Credit if that counts toward the allowance.

Many Thanks

https://www.gov.uk/government/publications/pension-freedoms-and-dwp-benefits/pension-freedoms-and-dwp-benefits