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When will I have to pay tax on my pension fund?

You can start taking benefits from your fund from age 55. Up to 25% of the fund can be paid to you as tax-free cash, and any pension payment after this will taxed as personal income. Until Liberty SIPP Ltd is advised of your tax code, your income will be paid less 20% which will be paid direct to HMRC.

You will be liable to tax if any of your Liberty SIPP investments or payments made from the funds are prohibited by HMRC. These are known in the industry as "unauthorised payments". The tax could be as much as 55% on the amount paid.

Please note the value of investments, and any income from them can go down as well as up and you may not get back your original investment. We do not offer advice about the suitability of our products or any investments held within them. Should you require financial advice you should consult a suitably qualified financial adviser

 

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