Deferred State Pension Lump Sum - Tax rate applicable ?

HMRC manual EIM75750 states that "If the basic rate band has been extended by Gift Aid, that can be accounted for in the calculation." So is it correct that if a 40% higher rate taxpayer makes an acceptable gift aid donation which increases the higher rate tax band so that all of their income is then taxed at the 20% basic rate, would this 20% marginal rate of tax that applies after Gift Aid also be applied to a state pension deferred lump sum?

Hi,
Yes the extended tax basic rate tax band would be set against the incomne for that tax year. 
Thank you.