.png)
.png)
A lesson in pensions
Key points
- If a pension scheme is registered with HMRC the fund does not pay income tax or capital gains tax and grows tax-free.
- At age 55 a lump sum of up to 25% can be taken with the rest of the fund generating an annual taxable income.
- Income tax relief is given differently on contributions into an employee scheme and a personal pension scheme.
- Higher rate taxpayers must consider the annual allowance rules when paying into their pension pots.
- For those of retirement age who want to realise their investments the two main options are a pension annuity or a ‘flexi access drawdown’ fund.
Having made it to the end of another week of teaching from the kitchen table I was looking forward to putting away my tax books and starting the weekend with our family ‘Zoom’ call that has lately become a Friday night tradition. Little did I...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
