If you've received a 25% tax free pension lump sum, but due to other income are then a higher rate tax payer for the year, I'm assuming that additional tax will be due on the lump sum. I've looked all through the tax return to try and see how to do this but am no further forwards! Please could someone let me know which boxes I should be using, or point me in the direction of some guidance/notes? (or confirm that there's some unlikely loophole where you don't have to pay anything additional!!)
Many thanks
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Tax free means tax free, means doesn't go on the tax return, means no tax to pay on the lump sum.
If you have only taken out 25% of the value of your Pension pot it is tax free just remember that when you withdraw from the remaining 75% of the pot that it is not tax free and is taxable at your highest rate of tax.