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If I draw my pension pot and immediately put it in a investment

Customer Question

If I draw my pension pot and immediately put it in a investment will I tax on it
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi
Thanks for your question
Not necessarily - you do have scope for a transfer to be made by your pension provider directly to a further arrangements, and NOT suffer tax on the transaction, but these apply in the main to other pension positions, such as an annuity or another pension plan. When you advise suing the money for an investment - this does not seem (at face value) likely to fit the remit.
Each pension provider has different release provisions, so your first port of call needs to be your current pension provider if you plan involves a new pension position,
If it does not, then if age 55 or over then the first 25% draw on the lump sum of pension will be tax free, and anything greater than this will be taxed.
Let me know if I can be of any furtehr assistance
Thanks
Sam

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