Tim Blackman

I have been receiving my Local Government Pension Scheme (LGPS) pension since 2022 when I reached 66 years old but have continued to work full time. In 2023 I joined the Universities Superannuation Scheme (USS). In 2023/24 I have exceeded the annual allowance and will need to pay the tax charge on the excess. I have not used any annual allowance in 2020/21, 2021/22 and 2022/23 . Given that HMRC rules allow three years of annual allowance to be rolled forward, am I eligible to do this? Eligibility requires the taxpayer to be a member of a UK registered workplace pension during the years of unused allowance, which is the case with LGPS. However, I was not an active member as I was not paying contributions. I was a deferred member in 2020/21, 2021/22 and part of 2022/23, with the other part of that year as a pensioner member. The rules state 'member' and that it is not necessary to have been paying contributions in the years of unused allowances, so it seems I am eligible but wanted to check given my specific circumstances.

I am currently working full time and am an additional, 45%, tax payer (self-assessment). I am also receiving a workplace pension which, because it is in addition to my salary, is all taxed at 45%. I retire in May 2025 when my only income will be my pension. This is considerably lower than my current income. How do I ensure that from May my pension is not all taxed at 45%? Thank you.