02 — Tax
Pension Tax
How pensions are taxed and how to make the most of tax relief.
8 articles
Do You Pay Inheritance Tax on Pensions?
Pension inheritance tax rules in the UK — the current position, how death benefits are taxed, and the major reform coming in April 2027 that changes everything.
Do You Pay National Insurance on Pension Income?
Whether pension income is subject to National Insurance in the UK — the clear answer, plus what happens if you're working and drawing a pension at the same time.
How Much of Your Pension Can You Take Tax Free?
The 25% pension lump sum rule explained — what the Lump Sum Allowance is, how the £268,275 cap works, and what happens when you have multiple pensions.
What Is Pension Tax Relief and How Does It Work?
Pension tax relief explained — how basic, higher and additional rate relief works, how to claim it, and how much the government is actually adding to your pension.
What Is Salary Sacrifice for Pensions and Is It Worth It?
Pension salary sacrifice explained — how it works, how much you save in tax and NIC, the employer NIC angle, and the situations where it doesn't make sense.
What Is the Pension Annual Allowance?
The pension Annual Allowance explained — what counts toward it, the tapered allowance for high earners, the MPAA, and how carry forward works. Current for 2025/26.
What Is the Pension Lump Sum Allowance?
The Pension Lump Sum Allowance explained — what it replaced, how the £268,275 limit works, the death benefit allowance, and what it means for your tax-free cash.