Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • mrkb
    • By mrkb 5th Mar 18, 6:31 PM
    • 1Posts
    • 0Thanks
    mrkb
    Paying tax on pension
    • #1
    • 5th Mar 18, 6:31 PM
    Paying tax on pension 5th Mar 18 at 6:31 PM
    Hi there,

    Is there any way at all possible (legally) to avoid paying the 40% tax when withdrawing a full pension amount?

    Thanks
Page 1
    • Aegis
    • By Aegis 5th Mar 18, 6:36 PM
    • 4,916 Posts
    • 3,137 Thanks
    Aegis
    • #2
    • 5th Mar 18, 6:36 PM
    • #2
    • 5th Mar 18, 6:36 PM
    Hi there,

    Is there any way at all possible (legally) to avoid paying the 40% tax when withdrawing a full pension amount?

    Thanks
    Originally posted by mrkb
    You could retire abroad to a lower tax environment and stay out of the country for long enough that you don't get caught by the temporarily non-resident rules. Aside from that, no, not without structuring your withdrawals to fall below the higher rate threshold (i.e. not withdrawing the full amount right away).
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
    • dunstonh
    • By dunstonh 5th Mar 18, 6:41 PM
    • 93,034 Posts
    • 60,421 Thanks
    dunstonh
    • #3
    • 5th Mar 18, 6:41 PM
    • #3
    • 5th Mar 18, 6:41 PM
    Is there any way at all possible (legally) to avoid paying the 40% tax when withdrawing a full pension amount?
    Move to Portugal.
    Dont draw the money and do something more sensible instead.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

574Posts Today

5,655Users online

Martin's Twitter