If your total income is above your personal allowance of £12,570, you pay tax on your pension in the usual way. whether it's a state or another type of pension. However, you do not have to pay national insurance once you have reached the state pension age.
Your total income will include other sources of income, such as:
Should you receive a pension through a pension provider, they will apply a sufficient tax code and the income tax will be deducted and paid by the provider, on your behalf, to HMRC. If you have other incomes sources it will be necessary to file a tax return.
If you're living abroad, you may have to pay tax if you're classed by HMRC as a UK resident. If you're a non-resident you shouldn't pay tax in the UK but may pay in the country you're living in.
In most circumstances, you can take up to 25% of your built-up pension pot tax-free. However, this is limited to the lifetime allowance of £1,073,100.
So, for example, you can take out £25,000 from your £100,000 pension tax-free. The remaining £75,000 will be taxed at the applicable rate and paid to HMRC by your pension provider.
If you receive a total private pension greater than the lifetime allowance of £1,073,100, you'll usually have to pay a tax charge. This amount will be deducted by your pension provider and paid directly to HMRC. The amount of tax deducted will depend upon the way you received the money:
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