Annual Allowance calculation for SIPP

AlanP_2

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

HappyHarry

AlanP wrote: »

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.