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Tax question
Posted: Thu Aug 18, 2022 7:45pm
Helpful member
If I put 6000 pound in a pension and it gets interest of 4000 pound 10000 pound do I pay tax on 10000 or the profit of 4000 pound.
Posted: Thu Aug 18, 2022 10:16pm
You would pay tax on the income of 4000 but only if it takes you over the tax paying threshold of course
Posted: Fri Aug 19, 2022 11:18am
Super helpful member
Hi
I don't understand what your question is exactly, but...
If your pension fund grows, and you leave the growth in the fund, then there is no tax to pay. However, if instead you take that money as income then you will pay income tax as appropriate.
Cheers
Steve
Posted: Fri Aug 19, 2022 3:36pm
I’m going to take all the money out all £10,000.
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Posted: Fri Aug 19, 2022 5:56pm
Helpful member
rds123 wrote on Fri Aug 19, 2022 3:36pm:
I’m going to take all the money out all £10,000.
If the total value of the pension fund is 10,000 and you haven't made any other withdrawals from it then I think 25% (ie 2,500) would be tax free and you'd pay income tax on 7,500.
Posted: Fri Aug 19, 2022 8:43pm
I thought if i only made £ 4000 profit then I only paid tax on my profit not my £ 4000. Not my £6000.
Posted: Sun Aug 21, 2022 8:35pm
Helpful member
rds123 wrote on Fri Aug 19, 2022 8:43pm:
I thought if i only made £ 4000 profit then I only paid tax on my profit not my £ 4000. Not my £6000.
If you received tax relief on the money when you put it in to the pension fund, then you have to pay income tax on any withdrawal, apart from the first 25%.
Posted: Mon Aug 22, 2022 7:44am
It was a work’s pension what I put in the company put the same in it could have been tax free then, but that was 25 years ago what little bit was put in as just built up over the years.
As a Spanish resident I don’t pay tax in the uk can I get it back.
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