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Posted Mon, 06 Nov 2023 18:32:15 GMT by
If I take a lump sum from my pension at 55, can I take 25% tax free and pay the remainder back in to my pension e.g. withdraw £60k, take £15k tax free, £45k on which I pay tax at 40% (£18k) then pay £27k back into my pension and claim the tax relief back?
Posted Thu, 09 Nov 2023 14:17:05 GMT by HMRC Admin 19 Response
Hi,

You may be liable to a tax charge as your annual allowance will decrease as you have taken part of your pensin pot. You can see guidance here:

Tax on your private pension contributions

Thank you.

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