Pension drawdown glossary
The rate of income tax you pay on the next pound of income. Taxable pension withdrawals are added to your other income for the year, so a large withdrawal can push part of it into a higher band.
Source: GOV.UK: Income Tax rates and Personal Allowances · Last reviewed 24 September 2026
See every term in the A–Z glossary. Definitions are general information for the 2026/27 tax year, not personal advice.
Important: The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and benefits depend on individual circumstances. This is not financial advice.