TAX Relief / Pension

Sydney2008

Hi, new here and first post....

Not sure if this is is the correct place to put this thread? as this covers Tax & Pensions

I am after some advise, I am 44, fully employed and pay 40% Tax, I also have a few buy to let properties that are Let and will soon be making a profit, previous years have run at a loss.

I have a company pension that I also pay AVC's into, I know I get Tax relief on anything paid into the pension.
As my properties were purchased as long term investments and too top up my pension on retirement , and I will soon be paying Tax on any profit should I sweep any rental profit directly into my pension as an AVC? And get Tax relief?

Pros and cons?

I am waiting to hear from my accountant, with regards further suggestions from them.

Many Thanks

Dave

jem16

Sydney2008 wrote: »

should I sweep any rental profit directly into my pension as an AVC? And get Tax relief?

If you are a higher rate taxpayer now ( ie total income over £42,475) and likely to be a basic rate taxpayer in retirement, it's a no-brainer as you will get 40% tax relief and only have to pay 20% tax.

If you have too much pension income though - ie going into higher rate in retirment it might not be such a good idea.

Sydney2008

Cheers Jem16, I cannot see myself as a higher rate tax payer in retirment. I have also emailed my accountant and put my suggestion to them.

Thanks once again

Dave