Income ceiling before higher rate tax applies

R

Roro999

Registered User
Messages
302
What can a married couple earn subject to 20% tax in the following scenario:

Spouse 1 (works age 61) earns 36,500
Spouse 2 retired (age 59) invalidity pension 10,842
" HSE pension 10,000
Spouse 2 also has a private occupational pension which can be be drawn down. How much in money terms can be drawn down from the pension this year in order not to exceed the threshold before higher rate tax applies ?

Thanks.
 
Thanks JPD.
So in my case I think it's a total of 44,300+10,842+10,000 i.e 65,142.
Can someone correct/confirm on this.
 
Looking again I think it means we can earn up to 70,600 before incurring higher rate tax.
 
Roro999 said:
Looking again I think it means we can earn up to 70,600 before incurring higher rate tax.
Click to expand...
Yes, correct.

Spouse 2 could draw down more, and Spouse 1 add additional funds to a pension scheme, claiming higher rate relief.
 
You must log in or register to reply here.
Back
Top