Tax on UK Pensions. What age is it tax free ?
I was recently asked about tax advice regarding UK pensions…
Under current legislation, the minimum age from which you are able to draw funds from a UK Pension Scheme is 55.
As a result you will not be able to you access any of your Pension Funds until you reach 55.
Talk to your pension fund provider to find out what the value of the fund might be and what pension and or lump sum you will get.
Each pension scheme has its own rules and benefits for the members of the scheme.
Pensions can be quite complex so it’s important for you to understand your own pension scheme. You should ask your Pension Scheme Trustees or managers for the scheme rules on what the minimum age is for your pension scheme.
Here is some important information…
WHEN YOU TAKE YOUR PENSION, THE LEGISLATION ALLOWS YOU TO TAKE 25% OF THE FUND AS A TAX FREE LUMP SUM !.
You can then “buy” a pension with the remainder.
You should contact your pension provider to find out exactly what you can get. If you decide to take your pension before the scheme retirement date, the amount you receive will be significantly less than if you had continued to the scheme retirement date.
But remember, income tax is payable on your pension income. This will depend on your personal tax circumstances and what additional income you have. Hence, you can’t separate your pension information to the rest of your financial situation.
Here is the general site @ Revenue & Customs for tax… http://www.hmrc.gov.uk/incometax/index.htm