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Posted 20 days ago by Eva Wallace
Afternoon. I have a pension pot of 40k and want to take the whole 25% 10k tax free lump sum. However. Where do I stand if I take £12570 also out of the pension pot? This is under the income threshold for tax but will I be taxed on it as my "income" would be £22570 for the year.
Posted 14 days ago by HMRC Admin 8 Response
Hi,
The tax free element of the pension would not be counted as income for the purposes of tax.
Thank you.

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