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Practice Note 132/06 Deferment of State Retirement Pension 5 May 2006 The UK Pensions Act 2004 brought in new choices for people reaching the state retirement age, enabling them to defer claiming their state retirement pension. Putting off claiming their state pension allows people, at a later date, either to opt to receive a lump-sum payment together with the pension at the normal rate or to opt to receive a higher pension without a lump-sum payment. This Practice Note deals only with the taxation of state retirement pension lump-sum payments. State retirement pensions, whether paid at the normal amount or at an increased amount following a deferral period, are subject to normal income tax rules. The Practice Note can be found here M Couch Assessor of Income Tax More stories >>>
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