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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5113
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

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

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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?

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If you wish to withdrawn your full pension pot in Apr 2015, you would be taxed on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

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Best wishes.