More On Tax On Widow�s Pensions

However, if he dies early in the tax year - say, in late April or May - you will get the same tax allowance over almost a whole year.

So the earlier in the tax year that your husband dies, the less income you will be able to have on top of your pension before you start to pay tax.

If your husband dies right at the start of the tax year, you will be able to have only about £67.60 a week on top of your pension before you start paying tax if you are under sixty-five.

If you are over sixty-five, you will be able to have more income on top of your benefit, about £88.66 on top of your pension before you start paying tax.

But if your husband dies later in the tax year, you will be able to have much more than these amounts.

In the second year the position is a bit simpler.

If you are under sixty-five, you will be able to have £67.60 a week on top of your pension without paying tax. If you are aged sixty-five or over, the figure is £88.66 assuming that you do not get widow's allowance.

After the second tax year, you will just get a single person's tax allowance.

You will then be able to have £8.99 on top of your basic pension if you are under sixty-five and £80 if you are aged sixty-five or more.

Remember that each amount is the average over the year on top of the basic widow's benefits.


New for 2015 - Widow's Benefits

or Tax Free Interest

Widow's Benefits

/retirement/pensions/income/advice/widows-benefits.php... see: Widow's Benefits