recycling query

gnash101 · 24 March 2018 at 9:08AM

I put my pension into drawdown several months ago, took the 25% pcls and the rest remains invested (no income taken).
I am contributing to a 2nd sipp which I intend to access around July when I retire.
I would like to make a £15k lump sum payment to this 2nd sipp before the end of this tax year. I am still working and total contributions would still be below my gross wage and below £40k.
My query is,
As I have taken a PCLS not long ago, could this be considered recycling or would I be okay as still working and still below gross wage threshold.

MK62 · 24 March 2018 at 12:17PM

You haven't given enough information for anyone to answer this.....

Do a search for "Pension recycling Royal London".....and they have a good article which explains the "rules" quite well (first hit on Google)
I think Prudential have a similarly useful article too.

Linton · 24 March 2018 at 12:22PM

There are several websites explaining the criteria for recycling - see here for example.

gnash101 · 24 March 2018 at 12:52PM

Have looked at these guidelines in the past but never noticed the Royal London(no.4) on chart which says if contribution is less than 30% of tax free lump sum then recycling has not happened.
My extra contributions are certainly less than this amount so I assume I should be ok.

Thanks for replies

recycling query

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