ScottySix Blair
Joined: 3/20/2024
-
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?