Pensions and tax — Hoxton Capital Management
Feb 10, 2021
Pensions and Tax
Pensions can benefit from some favourable tax conditions, for example they grow free from capital gains tax and you may be able to take a 25% tax free lump sum when you begin drawing down on the pension (PCLS).
Are UK pension contributions tax free?
Contributions made within any given tax year that are within your annual allowance, are tax free up to certain limits. The annual allowance is currently £40,000. This includes any contributions made by you or anyone else on your behalf into defined contribution pensions, and any increase in a defined benefit scheme in a tax year.
Originally published at https://hoxtoncapital.com on February 10, 2021.
