State pension

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

State pension

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

Introduction

The state pension is paid from the National Insurance Fund, with contributions by current taxpayers used to fund the current state pensions. There is no investment to meet the future pension needs of current taxpayers.

Reaching state pension age prior to 6 April 2016

Where the individual reached state pension age before 6 April 2016, there are three types of state pension payable in the UK:

  1. category A ― the basic state pension and state second pension (S2P, formerly SERPS), based on the individual’s national insurance contribution (NIC) record

  2. category B ― the basic state pension and S2P, based on the taxpayer’s spouse or civil partner’s NIC record (can be claimed if the spouse / civil partner’s record is better than their own)

  3. category D ― the supplement payable to those pensioners over 80 years old irrespective of contribution record

Categories A and B are mutually exclusive; an individual cannot claim a state pension under both. However, taxpayers in receipt of a category A or B pension are entitled to a category D supplement

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 22 Jul 2025 09:40

Popular Articles

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more Read more

Company cars

Company carsIntroductionCompany cars are one of the most common taxable benefits. The rules for calculating the benefit are complex, and the reporting requirements are more onerous than most benefits. Company cars are covered by very specific legislation. Detailed guidance on each of the following

14 Jul 2020 11:15 | Produced by Tolley Read more Read more

First year allowances

First year allowancesFirst year allowances (FYAs) are available on the following items:•first-year relief on qualifying new main rate plant and machinery (at 100%, which is described by HMRC as ‘full expensing’) and special rate assets (at 50%) from 1 April 2023 (companies only). These FYAs were

14 Jul 2020 11:41 | Produced by Tolley Read more Read more