Tax Question Cashing In Private Pension

goldenmask

A Pensioner can take £2234.45 lump sum as one off payment from private pension by 29th Oct 24. This is taxable but will they get taxed on remainder of state pension this tax year as takes over taxable limit?

Thank you in advance for any replies ;-)

molerat

The pension will be taxed according to what tax code is held by the provider.  At the end of the year the whole income will be looked at by HMRC and things will be put in place to collect / refund any tax difference.  More information needed as to what this pension amount represents for a more rounded answer.

flaneurs_lobster

Everyone (being a "Pensioner" is irrelevant) is taxed on that portion of their income that is taxable.

Need rather more information than that given. Don't think the date is of any relevance. 

molerat

flaneurs_lobster said:

 Don't think the date is of any relevance. 

Pre budget sky will fall in mode ?

goldenmask

molerat said:

The pension will be taxed according to what tax code is held by the provider.  At the end of the year the whole income will be looked at by HMRC and things will be put in place to collect / refund any tax difference.  More information needed as to what this pension amount represents for a more rounded answer.

Thanks for reply, she is cashing in her whole private pension as a lump sum

goldenmask

flaneurs_lobster said:

Everyone (being a "Pensioner" is irrelevant) is taxed on that portion of their income that is taxable.

Need rather more information than that given. Don't think the date is of any relevance. 

Thanks, cashing in whole private pension as lump sum

Albermarle

goldenmask said:

flaneurs_lobster said:

Everyone (being a "Pensioner" is irrelevant) is taxed on that portion of their income that is taxable.

Need rather more information than that given. Don't think the date is of any relevance. 

Thanks, cashing in whole private pension as lump sum

Then normally 25% will be tax free, unless she has already taken that earlier.