In which year is the final payment of state pension taxed?

BootcamperHF · 22 May at 6:46PM

I am joint executor for an individual who died in March 2022. With other private pension income the individual was liable to basic rate income tax. The DWP have advised that the state pension due for the period from when it was last paid until the date of death will be received into the estate this month - May 2022. Is this payment taxed when received (2022/23) or should it be as income for tax year to which it relates (2021/22).

Alter_ego · 22 May at 6:50PM

Tax is not normally deducted from State pension. It is accounted for by the tax code on private income/ pensions

Dazed_and_C0nfused · 22 May at 6:51PM

State Pension is taxable in the tax year it relates to not when it was paid.

So nothing would be taxable in 2022:23.

BootcamperHF · 22 May at 6:54PM

Alter_ego said:

Tax is not normally deducted from State pension. It is accounted for by the tax code on private income/ pensions

I am aware that tax is not deducted from state pension but wanted to understand what year it falls to be include in total income when calculating the tax liability.

BootcamperHF · 22 May at 6:54PM

Dazed_and_C0nfused said:

State Pension is taxable in the tax year it relates to not when it was paid.

So nothing would be taxable in 2022:23.

Thanks for confirming that.

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In which year is the final payment of state pension taxed?

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