Friday, November 11, 2011

Are Old Age Pensions in the Uk taxable?

Ignore the idiots who gave the thumbs down to earlier answers. As a pensioner, with a company pension, also, I can answer for certain. You have a tax-free allowance, just the same as you do when working. When you exceed the allowance,(this includes your State Pension), you start to pay tax. If you only have the State Pension, then you will not have enough income to pay tax. If you do have other income, and it pushes you into a tax liable position, the tax amount due is set against the tax-free allowance figure. The State Pension is always paid without tax deduction.

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