Taking pension income from two sources

halwyn

We are a newly retired couple aged 60 and each have a SIPP with ii.  I have no income and have chosen to take £16,760 this tax year from my SIPP - £12,570 plus the TFLS element.  I am taking it in one lump and will reclaim the tax via a P55.  My wife would do the same - but she has just started drawing a small DB pension of £58 per month after tax.  

Can anyone advise how she can reach the same place? - that is pay no income tax but use up her full £12,570 allowance and receive the relevant TFLS.  Ideally with the full amount paid out early in the tax year.  I think the P55 route requires that you take no futher pension income - but she will have the £58 regular income.  I guess she can take the ii withdrawal monthly at 1/12th of the remaining allowance - but we'd prefer the money in one lump (plus some tax admin).

Albermarle

£58 X 12 = £696

£12570 minus £696 = £11,874 can be taken as taxable income without paying tax and this would have an associated £3,958 tax free.
So she can take a UFPLS of £11,874 + £3958 = £15,832.

The one thing I am not sure about is claiming back any overpaid tax by P55 if there is a separate regular income. 
Also not sure if the regular pension has a tax code or if she is paying any tax on it.
If it is not possible then she will just have to wait until after the tax year ends. Some months later the PAYE system will make an automatic calculation for 24/25 and any refund due will be paid then. 

dunstonh

The one thing I am not sure about is claiming back any overpaid tax by P55 if there is a separate regular income. 

The P55 asks for other incomes. So, it would be disclosed on that section.