ChatterBank9 mins ago
State Pension question
4 Answers
Hi,
Please can someone advise re this ?
Married couple - Husband under 65 and currently claiming his private pension which is taxed at source.
When 65 does he again pay tax on his state pension also? Is there an amount you have to earn ( as in employment ) before you are taxed in retirement.
I am getting conflicting stories when trying to check this out !
Please can someone advise re this ?
Married couple - Husband under 65 and currently claiming his private pension which is taxed at source.
When 65 does he again pay tax on his state pension also? Is there an amount you have to earn ( as in employment ) before you are taxed in retirement.
I am getting conflicting stories when trying to check this out !
Answers
Best Answer
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For more on marking an answer as the "Best Answer", please visit our FAQ.The tax allowance for those 65-74 is currently �9,030, rising to �9,490 for 2009/10. HMRC will notify the private pension provider of the new tax code and it will be adjusted to take into account the State Pension. Any tax payable on the State Pension will be deducted from the private pension.
http://www.hmrc.gov.uk/pensioners/pension-stat epension.htm
http://www.hmrc.gov.uk/pensioners/pension-stat epension.htm
You ask "Is there an amount you have to earn ( as in employment ) before you are taxed in retirement?.
Pensioners have a higher personal allowance than younger people. At present the basic personal allowance (i.e. the amount of income that isn't taxed) for someone under 65 is �6035. At age �65 that rises to �9030. However, if a pensioner has an income greater than �21800 their personal allowance starts to go down. (It goes down by �1 for every �2 of income above �21800, but it can't go below �6035):
http://www.hmrc.gov.uk/incometax/personal-allo w.htm
For the whole picture, start here:
http://www.hmrc.gov.uk/pensioners/index.htm
Chris
Pensioners have a higher personal allowance than younger people. At present the basic personal allowance (i.e. the amount of income that isn't taxed) for someone under 65 is �6035. At age �65 that rises to �9030. However, if a pensioner has an income greater than �21800 their personal allowance starts to go down. (It goes down by �1 for every �2 of income above �21800, but it can't go below �6035):
http://www.hmrc.gov.uk/incometax/personal-allo w.htm
For the whole picture, start here:
http://www.hmrc.gov.uk/pensioners/index.htm
Chris