This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Inherited pension

Jonnycoe
Posts:1
Joined:Sat Oct 12, 2024 12:58 pm
Inherited pension

Postby Jonnycoe » Sat Oct 12, 2024 1:09 pm

I have a inherited sipp pension from my dad. He died after the age of 75 so any income I take is taxed as earnings.
As I earn just over 50k a year any income I take from his pension would be taxed at 40%.
My question is, if I was to increase my employee pension contributions to my full salary amount every month and then use my inherited pension to live off would my tax lower back down to 20% as long as I did not take more than 50 k a year out of my inherited pension.
Sorry if this question does not make sense but I can't think of any other way to word it.
Jon

Return to “Savings & Investments, Pensions & Retirement”