Tax On A Widow's Pension (2015 update)

Most widows receive a widow's pension.

Women widowed under sixty, and some widowed over that age, also get a lump sum of £1,000 called widow's payment. The widow's pension is taxable, but the widow's payment is not.

The income you obtain from the pension uses up a lot of your tax allowances. So the income you can have on top of the basic widow's pension before you pay tax is fairly limited, especially after the end of the tax year in which your husband died.

In the first tax year, the amount you can get on top of your pension before you pay tax depends on the month in which your husband died.

After his death, you receive the whole annual tax allowance, however close it is to the end of the tax year on 9 April. So if your husband dies close to the end of the tax year say, in February or March - you qualify for a whole year's tax allowance to cover just a few weeks' income.

It is likely, therefore, that you will not need to pay any tax at all yourself in that tax year.


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