Money Tax Smart

Raymond's Income Tax Story

Raymond, a 67-year-old retiree, enjoys multiple income sources: a state pension and a private pension, savings interest, trading income from eBay and rental income.

Question: Which source of income do Raymond's state and private pensions fall into? a) non-saving income b) Saving income c) Dividend income

Answer: a) non-saving income

Explanation: Raymond's state and private pensions are classified as non-savings income. Generally, non-savings income is taxed first, and your personal allowance is deducted from it.

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