Nfn3174

Hello again. Yes I know that anything above the current £10,000 annual allowance is taxed. I pay mine through my end of year assessment. The remainder stays in my pot but as you say, when withdrawn as an income later on, it will all be taxed as part of an income. So therefore the amount over the £10000 that already has had tax paid on it, which is sitting in the pot, is being taxed twice. Once during an end of year assessment when it goes into the pot and once again on withdrawal as it’s classed as an income.

Ok, so in that case is the tax that has already been paid via pension Scheme Pays refunded? Otherwise you would be taking tax from it twice wouldn’t you! Tax paid by the scheme pays when the self-assessment form submitted each year and also later on when the pension is withdrawn? So currently anything over the current MPAA of £10,000 which is currently getting taxed at 40% and then again when I am retired, say at 20% as an example. So that amount over the current MPAA would he getting taxed at 60% in the long run. That surely can’t be right.

If you have triggered the MPAA and paying tax on current pension contributions over the MPAA allowance of £10,000. Do you have to pay tax again on that pension pot when you want to withdraw it further down the line? Despite already having paid tax?