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Annual Allowance calculation for SIPP
AlanP_2
Posts: 3,553 Forumite
Hi - Quick question.
Have a DB linked AVC so actual AVC contribution * 12 = annual allowance value with tax being ignored.
What about for a SIPP - does the BR tax relief need to be added to personal contribution to arrive at Annual Allowance value?
For example, pay £200 pm into a SIPP = £2400 p/a, plus tax relief of £600 results in £3000 in the SIPP.
Is it the £2400 or the £3000 I need to use for annual allowance purposes?
Thanks
Have a DB linked AVC so actual AVC contribution * 12 = annual allowance value with tax being ignored.
What about for a SIPP - does the BR tax relief need to be added to personal contribution to arrive at Annual Allowance value?
For example, pay £200 pm into a SIPP = £2400 p/a, plus tax relief of £600 results in £3000 in the SIPP.
Is it the £2400 or the £3000 I need to use for annual allowance purposes?
Thanks
0
Comments
-
Hi - Quick question.
Have a DB linked AVC so actual AVC contribution * 12 = annual allowance value with tax being ignored.
What about for a SIPP - does the BR tax relief need to be added to personal contribution to arrive at Annual Allowance value?
For example, pay £200 pm into a SIPP = £2400 p/a, plus tax relief of £600 results in £3000 in the SIPP.
Is it the £2400 or the £3000 I need to use for annual allowance purposes?
Thanks
It's always the gross figure, so in the above case, £3,000 is the contribution for Annual Allowance purposes.I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0
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