How can I avoid paying 40% tax on my pension?
Tirza van Suinvorde
2025-12-03 10:08:18
Count answers
: 2
You can take some of your private pension tax-free.
You’ll pay Income Tax on any part of the lump sum that goes above either: your lump sum allowance, your lump sum and death benefit allowance.
You may have to pay Income Tax at a higher rate if you take a large amount from a private pension.