Pension drawdown tax

KLaw

On retirement I transferred my works pension to HL. When I drawdown (infrequently) I pay 20% income tax (having saved that on paying in). My question is, when I have cleared the original deposit and all that is left to draw down is the interest accrued, will I still pay 20%?

TadleyBaggie

Regardless of the source, each drawdown from the pension will attract tax at your marginal rate. Do you have other income that exceeds your personal allowance?

westv

Interest accrued? Is it held as cash?

Dazed_and_C0nfused

KLaw said:

On retirement I transferred my works pension to HL. When I drawdown (infrequently) I pay 20% income tax (having saved that on paying in). My question is, when I have cleared the original deposit and all that is left to draw down is the interest accrued, will I still pay 20%?

If you are paying 20% on 100% of each withdrawal then that means at some point you have already taken the 25% TFLS.

As such any further payments you take will always be taxable income.  The amount of tax will depend on your personal circumstances but you will never get any that isn't taxable income now.

artyboy

Dazed_and_C0nfused said:

KLaw said:

On retirement I transferred my works pension to HL. When I drawdown (infrequently) I pay 20% income tax (having saved that on paying in). My question is, when I have cleared the original deposit and all that is left to draw down is the interest accrued, will I still pay 20%?

If you are paying 20% on 100% of each withdrawal then that means at some point you have already taken the 25% TFLS.

As such any further payments you take will always be taxable income.  The amount of tax will depend on your personal circumstances but you will never get any that isn't taxable income now.

That plus the OP must have additional income that is using up their full personal allowance.

400ixl

artyboy said:

Dazed_and_C0nfused said:

KLaw said:

On retirement I transferred my works pension to HL. When I drawdown (infrequently) I pay 20% income tax (having saved that on paying in). My question is, when I have cleared the original deposit and all that is left to draw down is the interest accrued, will I still pay 20%?

If you are paying 20% on 100% of each withdrawal then that means at some point you have already taken the 25% TFLS.

As such any further payments you take will always be taxable income.  The amount of tax will depend on your personal circumstances but you will never get any that isn't taxable income now.

That plus the OP must have additional income that is using up their full personal allowance.

Which could just be the state pension now if by retired they meant at state pension retirement age, rather than early retirement.