Income tax on taking two private pensions

AinsleyFatCat

Hello,
I'm 55 and planning to semi retire this year using my LGPS pension
The annuity that I plan to take under this will be under the income tax threshold of £12750. 
I also have a small historical pension that I'm planning to cash-in as a one off lump sum, which will more than likely (when I'm able to get a true figure) also be under the income tax threshold.
I'm wanting to know whether or not I will then be having to pay tax on the combined amount that I take (separate pension lump sum & LGPS annuity), as this combined figure would be over the income tax threshold.
Or, is the small separate pension taken as a lump sum viewed separately for tax?
Would I only pay income tax on my LGPS  when in the future I earn above the £12750? 
Grateful for any advice. TIA

molerat

Anything above the tax free lump sums is income in the year it is taken and taxed accordingly. it is all added together, the same as having multiple jobs.  The way a lump sum is taxed by the provider though may leave you owing or owed tax.

Dazed_and_C0nfused

And the Personal Allowance is only £12,570, not £12,750.

Unless you know something about next month's budget/fiscal statement 😉

AinsleyFatCat

Dazed_and_C0nfused said:

And the Personal Allowance is only £12,570, not £12,750.

Unless you know something about next month's budget/fiscal statement 😉

Sorry, silly error

400ixl

As above, you are taxed upon the total of your taxable incomes, so there is not treating differently. Once you remove your tax free portion that you are taking, the rest is taxable taking into account your personal allowance.

AinsleyFatCat

molerat said:

Anything above the tax free lump sums is income in the year it is taken and taxed accordingly. it is all added together, the same as having multiple jobs.  The way a lump sum is taxed by the provider though may leave you owing or owed tax.

Thank you.  I'll bear that it mind:)

AinsleyFatCat

400ixl said:

As above, you are taxed upon the total of your taxable incomes, so there is not treating differently. Once you remove your tax free portion that you are taking, the rest is taxable taking into account your personal allowance.

Many thanks

SVaz

You will have two different tax codes for the two pensions.  One needs to know about the other,  easiest way is to have a Gov uk tax account and you tell them how much each income will be.  

AinsleyFatCat

SVaz said:

You will have two different tax codes for the two pensions.  One needs to know about the other,  easiest way is to have a Gov uk tax account and you tell them how much each income will be.  

Many thanks