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Pensions

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Pensions

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarTax Tutor.
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  • July 3, 2020 at 7:05 am #575788
    AvatarAverageAndy
    Member

    sir i understand that in case of money purchase schemes, an individual over the age fo 55 years can withdraw up to 25% lump sum and for the rest of 75%, it can be withdrawn as annuity or perpetuity. So regarding the latter 75% i had a doubt. are the annuities/perpetuities taxable at the highest rates of marginal tax when received??

    July 5, 2020 at 11:14 am #576046
    AvatarTax Tutor
    Member

    Pension income from an annuity is taxable and will be treated as non savings income.

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