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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17157
Experience:  International tax
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Hi, My mother is in receipt of two pensions. The first

Customer Question

My mother is in receipt of two pensions. The first is a widows pension to which my late
father contributed to during the time he was employed. This is taxed and for which mum is granted by the revenue the tax code 245Y. Her second pension, which is much smaller, relates to her (short) working life and for which she is tax coded BR ( Base Rate? ).
To me this does not seem fair. Is there any way she can go about getting the revenue to change this, by claiming the tax allowance on both pensions, so that she would not have to pay Base Rate on her second pension ? I would appreciate any help you could give me.
Thank you in anticipation.
Barry Kenny
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Yes the BR does stand for Base Rate. If you pay tax at basic rate (20%) you'll be given a 'BR code' for your second pension - this means that you pay basic rate tax on all your income from this employer or pension provider.
It tells your mom that she has used some of her tax-free allowances in another pension.
The Y in your mom's first pension code is for people born before 6 April 1938 and eligible for the full Personal Allowance.
As she is using the full amount on this pension her second pension is under the basic rate.
The tax allowance is required on the first pension. Fortunately, HMRC could share the allowance between the 2 pensions.
This is dependent on the true tax for your mom.
If she doesn't pay tax on her first pension and she is not using all of her Personal Allowance, she can tell HMRC to use what's left in her second pension. You can share your Personal Allowance across several jobs or pensions until it's all used up.
You can use the new e-mail contact that is available:

Go to the above HMRC page to assist your mom in contacting them.

Expert:  TaxRobin replied 3 years ago.
Wanted to check back and see if you needed more info.