Recycling? Paying money into SIPP 2 years before getting tax free lump sum

Crossfell_2

I will start to receive a small pension in two years time. I will receive a lump sum of around £14000 as well as around £4000/annum pension. I currently have around £17000 sitting in a savings account. Currently I have been paying £100 per month into another pension. I would like to pay as much of this as possible into this pension.. Would I be likely to fall foul of pension recycling rules?
My other choice is to top up my ISA, but the pension top up is my favoured option. Any observations would be appreciated.

xylophone

What do you think you are recycling?

You have earned income? You wish to increase your pension contributions?

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

kidmugsy

Crossfell wrote: »

Would I be likely to fall foul of pension recycling rules?

It's conceivable: there is provision in the rules to inhibit people suddenly increasing their pension contributions two years (I think) before receiving a lump sum. You should read the hmrc rules: you could start with the useful little summary Hargreaves Lansdown gives.

xylophone

https://forums.moneysavingexpert.com/discussion/5203397

post 3 may be of interest.

Also http://www.aviva-for-advisers.co.uk/site/public/tech-centre/tech-article-detail/recycling-tax-free-cash