How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5028
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

, I'd like to withdraw my full pension pot of £250,000 in

Resolved Question:

Hi, I'd like to withdraw my full pension pot of £250,000 in April. I am currently a non tax payer as my only income is maintenance. Could you tell me how much tax I will have to pay if I withdraw it all at once?
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.

Hello and welcome to the site. Thank you for your question.

If you wish to withdrawn your full pension pot in Apr 2015, you would be taxed on

(250,000 x 75%) £187,500 as the first 25% would be tax free

As your income would be in excess of £100,000 you would lose personal allowance and your tax would be

31,785 x 20% = £6,375

118,215 x 40% = £47,286

37,500 x 45% = £16,875

Total tax payable = £70,536

Net amount received (250,000-70,536) = £179,464

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.