Tax adjustment on first drawing a pension.

Albermarle

So I imagine that means the initial monthly private pension payments may be tax-free, then the arrival of the state pension will lead to that tax-free period being corrected with a K tax code which takes tax back?

Not really, it will just mean you will start paying 'normal' tax on your private pension from when the first state pension is made. In fact it will probably be a month earlier, as the SP is paid in arrears.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81985343#Comment_81985343

Personal Allowance and tax code allowances are getting mixed up there.

3L is a code people have seen with these elements,

Personal Allowance £12,570 less State Pension £12,536 = tax code allowances 34 = code 3L (or S3L or C3L).

Someone with a Personal Allowance of £390 would end up with a K code or a T suffix code, never an L suffix one.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81985343#Comment_81985343

Personal allowances of £390 woukd result in a code of £39L

Personal allowances of 39 will give a code of 3L.

You replace the last digit with a letter

https://www.gov.uk/tax-codes/what-your-tax-code-means