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Posted Sun, 16 Jun 2024 09:15:08 GMT by Ian
I receive a state pension, a local government pension and have substantial savings in a SIPP. I am trying to work out how much monthly income I can drawdown my SIPP and keep me in the 20% tax band, that is, keep my total pensions income for 2024/25 below £50,270. If from my other non-ISA savings I get interest over the £1,000 tax free savings allowance during 2024/25, which is a distinct possibility, is that excess interest added to the income from my pensions, that is, it would then take me into the 40% tax band and also at the same reduce my savings tax free allowance to £500 (and therefore incur even more additional income tax payable), or are any the excess savings interest charged separately at 20% provided my total pensions income is below £50,270? I would be grateful for advice on this matter.
Posted Wed, 10 Jul 2024 07:39:54 GMT by HMRC Admin 25 Response
Hi Ian,
Sorry, we are unable to give financial advice.
You my find the following  guidance helpful:
Tax on savings interest
Thank you. 

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