Retirement Tax
Most retirees pay some income tax — the State Pension is taxable income, and so is anything you withdraw from a pension above the 25% tax-free lump sum. These guides explain how it works and how to avoid common pitfalls like emergency tax.
Guides in this section
- Is the State Pension taxable?
How the State Pension counts as taxable income, how HMRC collects the tax, and what happens if your pension uses up your personal allowance.
- Tax on pension drawdown
How income tax works on flexi-access drawdown, the 25% tax-free element, and how to avoid pushing yourself into a higher tax band.
- Emergency tax on pension withdrawals
Why HMRC often emergency-taxes your first pension withdrawal, the forms you can use to reclaim it, and how to avoid the problem.
- How much pension can I take tax-free?
The 25% tax-free rule, the Lump Sum Allowance, and how the rules apply to defined contribution and defined benefit pensions.
- Marriage Allowance for pensioners
How retired couples can use Marriage Allowance to save up to £252 in tax, who qualifies, and how to apply through HMRC.
- Inheritance tax and pensions
How pensions interact with inheritance tax, the changes scheduled for April 2027, and what passes to your beneficiaries.