Why did Alan Perkins get a £800 bill on his state pension?

Reports say a SERPS uplift pushed his income above the allowance, so HMRC charged tax on the excess. The state pension is taxable, even though it is paid without deductions. HMRC usually collects via codes on other income, or by issuing a bill if there is no PAYE source. The Alan Perkins state pension tax case is a reminder to track your taxable total across the year and to expect a bill if the allowance is exceeded.

Will the Rachel Reeves pension promise remove tax on SERPS as well as the core payment?

It is not clear yet. Any exemption would need detailed rules. One option is to make only the core weekly payment tax free. Another is to include SERPS and other additions. The Alan Perkins state pension tax debate shows why the scope matters. A partial design could leave many still taxable, while a full carve-out costs more and may require offsetting changes elsewhere in the system.

How close is the benefit to the allowance by 2027, and who is at risk?

With the triple lock raising payments and the threshold frozen, more people move into liability each year. Those with SERPS or inherited additions may cross the line sooner. The Alan Perkins state pension tax story shows how a small top-up can trigger a bill. Those with private pensions or part-time work face the same rules, since the state pension personal allowance applies to total taxable income.

What can retirees do now to reduce the impact of SERPS tax?

Check your annual estimate, tax code, and expected total income. Where possible, use ISAs for savings, claim the Marriage Allowance if eligible, or make Gift Aid donations that extend tax bands. If you draw from a private pension, consider timing of withdrawals. The Alan Perkins state pension tax example shows that planning the mix and timing of income can help manage bills, even if the state pension itself remains taxable.

Global Market Insights

December 22: UK State Pension Tax Row — SERPS Top-Ups Trigger £800 Bills Despite 2027 Exemption Pled

ByHuzaifa Zahoor December 22, 2025December 22, 2025

The Alan Perkins state pension tax case has fired up debate on fairness and future policy. A 71-year-old says a SERPS top-up pushed his income over the allowance, leading to an £800 bill. With the triple lock rising and thresholds frozen, more retirees could face the same outcome before any 2027 changes. We explain how SERPS tax works, what the Rachel Reeves pension promise could cover, and why this matters for disposable income, annuity demand, and UK savings providers.