Tax When you Get a Pension

What is Taxed  

You pay tax if your total annual income adds up to more than your Personal Allowance. Find out about your Personal Allowance and Income Tax (external link) rates. 

Your total income could include:  

You may have to pay Income Tax at a higher rate if you take a large amount from a private pension. You may also owe extra tax at the end of the tax year. 

If your Private Pensions Total More than £1,055,000 

You usually pay a tax charge if the total value of your private pensions is more than £1,055,000 (external link). Your pension provider will take off the charge before you get your payment.

Tax if Someone Inherits your Pension 

Other rules apply if someone inherits your State pension (external link) or your private pension (external link)

See Also: