Confused over 10k max Pension contribution ?

jayjays

Hi,

Once again I am turning to you knowledgeable people for assistance.

I am receiving a final salary pension & still earning , I now invest circa 30k per annum into a Vantage SIPP.

I assumed given the "new freedom rules" I would still be able to invest up to £40k assuming I have earned enough, excluding pension income.

I have read many bits and pieces but still non the wiser whether I will be restricted to a maximum 10k investment from April 2015 !

Can someone kindly explain the criteria which apply to a 10k max annual contribution

Thanks in advance

TCA

From 6th April 2015, the annual allowance will be reduced to £10,000 if you have withdrawn more than the 25% pension commencement lump sum (PCLS) from your defined contribution pension pot. If you're currently drawing down pension benefits using flexible drawdown, or you exceed the income limit for capped drawdown, you will also receive an annual allowance of £10,000 from 6th April 2015.

http://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/the-annual-allowance

jamesd

Income from your final salary pension is not counted when it comes to the decision to reduce the annual contribution allowance from £40k to £10k. It is not a defined contribution pension and the rules are specific to that type of pension.

jayjays

Thanks TCA for the speedy reply, I had actually came across your attached link, but with no reference to DB, I was a little concerned I may have been affected.
So to summarise before I get to my other question ref my partners pension........ I can invest up to £40k per annum as usual ?

jayjays

Thanks jamesd for spelling it out & thanks again TCA