If you take a tax free lump sum from pension, do you have to pay 40% income tax on it?

Clowance

Sorry, I cant find answer to this : I know you get the sum without tax deducted but then do inland revenue want their cut at the end of the tax year if that and other income has pushed you into the 40% band? I have looked everywhere and cant find the answer to this. I have trouble believing they wont want their cut. TIA

NoMore

A TAX FREE lump sum is tax free and not considered as income so does not attract income tax or add to any other income to create tax

Nebulous2

They don't. 25% tax-free from a DC pension is entirely tax-free. It doesn't add to your taxable income for the rest of the year. 

Taking it all up front is often not the best way to withdraw from a pension however, but that's a different topic. 

flaneurs_lobster

No, clue's in the name - tax-free.

Dazed_and_C0nfused

Clowance said:

Sorry, I cant find answer to this : I know you get the sum without tax deducted but then do inland revenue want their cut at the end of the tax year if that and other income has pushed you into the 40% band? I have looked everywhere and cant find the answer to this. I have trouble believing they wont want their cut. TIA

The reason you can't find an answer is because you massively overthinking things.

A tax free lump sum is exactly what it says on the tin.

And even if it wasn't that simply you don't need to worry about the Inland Revenue, they ceased to exist 20 years ago.