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Do I pay tax on my pension income?
Do I pay tax on my pension income?

The basics of tax on your pension.

Updated over 2 years ago

Yes. In most scenarios you’ll receive the first 25% of your pension fund tax-free, then pay income tax at your (then) usual rate on the rest.

You can take the first 25% of your pension fund as a lump sum (called a Pension Commencement Lump Sum), or use this tax-free sum as part of your income each year.

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