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  • FIRST POST
    • jollymonkeys
    • By jollymonkeys 11th Jul 17, 9:07 AM
    • 29Posts
    • 21Thanks
    jollymonkeys
    Adding a Lump Sum to a Pension from a Business Account
    • #1
    • 11th Jul 17, 9:07 AM
    Adding a Lump Sum to a Pension from a Business Account 11th Jul 17 at 9:07 AM
    Hi all,

    I'm considering transferring a lump sum from my business account to a private pension. However, I'm uncertain of the tax implications of this. Will I have to declare it on a tax return and if so, what is the likely tax percentage that I will need to pay be?

    Thanks in advance.
Page 1
    • greenglide
    • By greenglide 11th Jul 17, 9:16 AM
    • 2,897 Posts
    • 1,867 Thanks
    greenglide
    • #2
    • 11th Jul 17, 9:16 AM
    • #2
    • 11th Jul 17, 9:16 AM
    So it is a limited company of which you are a controlling director?

    If so then it is fine and you should have been doing this all the time. You pay no personal tax and the payment(s) by the company reduce its corporation tax liability.
    • jollymonkeys
    • By jollymonkeys 11th Jul 17, 9:18 AM
    • 29 Posts
    • 21 Thanks
    jollymonkeys
    • #3
    • 11th Jul 17, 9:18 AM
    • #3
    • 11th Jul 17, 9:18 AM
    Hi. Yes I am the director. Thanks for the advice. I'm trying to close the company down as I'm not trading through it and want to move the remaining funds in the account over to the pension.

    Thank you
    • WillowCat
    • By WillowCat 11th Jul 17, 11:59 AM
    • 704 Posts
    • 822 Thanks
    WillowCat
    • #4
    • 11th Jul 17, 11:59 AM
    • #4
    • 11th Jul 17, 11:59 AM
    Is the money in the business account from income in this financial year?

    If so, you're good to go, but if from last financial year you may need to make corporation tax payments? Best to speak to your accountant to confirm.
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