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25% tax free twice
KTMlad70
Posts: 19 Forumite
Say I have £300k in my works pension & I take the 25% tax free at age 58 but continue to contribute £3k a month into it for the rest of my working life (67) do I get 25% of that new portion £350k or there abouts tax free?
I think I do but need to know if I'm correct or not?
I fully expect to pay full tax on my remaining first £225k when I take it.
I think I do but need to know if I'm correct or not?
I fully expect to pay full tax on my remaining first £225k when I take it.
0
Comments
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You get 25% on the uncrystalised portion (new contributions after you crystallise the £300k)I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.1 -
Implicit in what MallyGirl has said, but worth calling out, you get 25% tax free on the value of those new contributions at the time you want to take the TFC - whether the investment has increased or fallen.MallyGirl said:You get 25% on the uncrystalised portion (new contributions after you crystallise the £300k)1
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