Pensions and Taxation

All income you receive from any pension source (state, stakeholder, personal or occupational) is taxable, although with some schemes, you are permitted to take a tax-free lump sum when you first retire of up to 25% of the capital value of your pension fund.

If the total sum of your taxable income is greater than your personal tax allowances, then you'll be required to pay Income Tax on any amount above your allowance. Your taxable income includes income from a job, savings or investments, the State Pension, any taxable State Benefits and income from a retirement annuity, personal, stakeholder and/or occupational pension.

To find out the tax implications on receiving your pension, select a topic from the menu below.