Tax on investments in drawdown

segovia

After taking a 25% lump sum am I correct in assuming only income is taxed on withdrawals from the remaining 75% i.e. any profit / growth from the remaining 75% isn't taxed?  Thinking about it further is the remaining 75% declared as investments on your annual Self Assessment?    

Mark_d

Whilst the fund is not crystallised it continues to grow tax free.  You are taxed on the amount you draw down, as per usual income tax rules.

MallyGirl

segovia said:

After taking a 25% lump sum am I correct in assuming only income is taxed on withdrawals from the remaining 75% i.e. any profit / growth from the remaining 75% isn't taxed?  Thinking about it further is the remaining 75% declared as investments on your annual Self Assessment?    

Anything you take from the 75% crystallised pot is income - regardless of whether it was the initial capital or growth or interest or dividends. As it grows you continue to be liable for tax on the entirety of what you draw down (take out) at your tax rate

Albermarle

Mark_d said:

Whilst the fund is not crystallised it continues to grow tax free.  You are taxed on the amount you draw down, as per usual income tax rules.

But the OP has taken the 25% tax free, so the remaining 75% is crystallised.

OP - Income tax potentially payable on all withdrawals ) depends on your tax position/other income.
As it is within the pension, nothing to declare on self assessment about the investments, or any returns/income from them.