How to avoid new tax rules on UK pensions | ExpatWoman.com
 

How to avoid new tax rules on UK pensions

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EW MASTER
Latest post on 21 January 2015 - 15:27

Retirees can take their 25% tax-free lump sum and another £10,600 without incurring an income tax bill, providing they are not receiving income from elsewhere.

Any income taken from a pension, or elsewhere, that is greater than £10,600 is subject to income tax, or taxed at marginal rates. A 20% income tax charge will be levied on pension withdrawals up to £31,785, minus the personal allowance. A further 40% tax will be levied between £31,785 and £150,000.

http://www.msn.com/en-gb/money/other/new-pension-rules-how-to-avoid-a-hu...