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pension draw down PAYE mechanics

pension draw down PAYE mechanics

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say I have a pension fund of £100,000

I just want to take out £25,000 and to leave the rest in the fund

do I get that £25k tax free or do I only get 25% of that £25,000 i.e. £6,250 tax free and the rest taxed on Mth 1 basis?

 

 

 

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By Not Anonymous
14th Feb 2020 17:32

Depends on your choice of pension strategy.

You can take 25% TFLS upfront.

Or 25% of each payment can be the tax free.

Other options are no doubt available

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By Accountant A
14th Feb 2020 20:46

I suspect that a key factor is the pension provider's ability to offer the flexibility that the law allows. Obviously, if the provider can't accommodate specific requests, the pension savings can be transferred to someone who can - if such a provider exists.

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