RE: I just wonder5 Apr 2019 10:16
Morning Tom I’m pretty sure the same rule applies to my private pension over the years I’ve been able to deposit funds in the pension say for egsample £1000 but because I’m self employed I deduct this from my yearly income then get tax relief on it at standard rate.
When I come to withdraw my pension I have to be careful on the drawdown after I have taken my lump sum allowance which I believe is currently 25% without paying tax but if my drawdown exceeds £11,600 which is the current rate allowance before tax is paid, then I would pay tax on my drawings that exceed this tax threshold.
I’m not a tax specialist so if anyone sees a mistake in my calculation please correct me.