NEW: Got questions about energy? Put them to Gary and Andrew from MSE's Utilities team during our energy-themed 'Ask An Expert' event. Check back here from Tuesday 9 August, 12pm

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

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).

Replies

  • Alter_egoAlter_ego Forumite
    3.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    Tax is not normally deducted from State pension. It is accounted for by the tax code on private income/ pensions
    I am not a cat (But my friend is)
  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
    7.3K Posts
    1,000 Posts Second Anniversary Name Dropper
    Forumite
    State Pension is taxable in the tax year it relates to not when it was paid.

    So nothing would be taxable in 2022:23.
  • BootcamperHFBootcamperHF Forumite
    21 Posts
    Third Anniversary 10 Posts
    Forumite
    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.
  • BootcamperHFBootcamperHF Forumite
    21 Posts
    Third Anniversary 10 Posts
    Forumite
    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.
Sign In or Register to comment.
Latest MSE News and Guides

Homes, hornets & high heels

This week's MSE Forum highlights

MSE Forum

Kids eat for 'free' or £1 this summer

Little ones can enjoy hot meals for less

MSE Deals