£3600 allowance- where to put it?

tingly

Hi there
Although I dont work due to illness but have savings , i believe i can contribute up to £3600 into a personal pension
Am i right in thinking i put £2800 oddin and it is topped up somehow?

Also wherewould i put the money without charges eating it up? I intend taking my pension in 6 years time or 11depending how ill i am then
Thanks

xylophone

A sum of £2880 is paid into a pension operating "relief at source" (stakeholder/personal pension) and the provider claims tax relief of £720.

It appears from a previous post that you are now aged 70.

You intend to make a payment of £2880 into a pension each tax year you are under 75?

http://www.pruadviser.co.uk/content/knowledge/technical-centre/tax_relief_members_contributions/

Tax relief is available on the following contributions:

individuals with earnings chargeable to UK income tax or who are resident in the UK – the greater of £3,600 gross and 100% of UK earnings
non-UK resident individuals - £3,600 gross.
The £3,600 amount is known as the 'basic amount'. Due to the way tax relief operates those with lower earnings / no earnings can only make use of the £3,600 if paying to a scheme that operates relief at source.

Basic rate tax relief
Anyone under 75 can benefit from basic rate tax relief on some or all of the contributions they pay, regardless of whether or not an individual actually pays any income tax.

Where an individual is restricted to tax relief on £3,600 – either because they are non-UK resident or have earnings below £3,600 – they will be able to receive basic rate tax relief in full on the gross contribution only if the pension scheme operates relief at source.

You intend to keep the money in cash, (rather than investing it) regarding the tax relief of £720 as "interest"?

HL SIPP might suit your purpose.

Alexland

What do you intend to do with the money at 75 - buy an annuity or go into drawdown?

tingly

Yes am 70 now- had hoped to draw down the money at 75

tingly

xylophone wrote: »

A sum of £2880 is paid into a pension operating "relief at source" (stakeholder/personal pension) and the provider claims tax relief of £720.

It appears from a previous post that you are now aged 70.

You intend to make a payment of £2880 into a pension each tax year you are under 75?

http://www.pruadviser.co.uk/content/knowledge/technical-centre/tax_relief_members_contributions/

Tax relief is available on the following contributions:

individuals with earnings chargeable to UK income tax or who are resident in the UK – the greater of £3,600 gross and 100% of UK earnings
non-UK resident individuals - £3,600 gross.
The £3,600 amount is known as the 'basic amount'. Due to the way tax relief operates those with lower earnings / no earnings can only make use of the £3,600 if paying to a scheme that operates relief at source.

Basic rate tax relief
Anyone under 75 can benefit from basic rate tax relief on some or all of the contributions they pay, regardless of whether or not an individual actually pays any income tax.

Where an individual is restricted to tax relief on £3,600 – either because they are non-UK resident or have earnings below £3,600 – they will be able to receive basic rate tax relief in full on the gross contribution only if the pension scheme operates relief at source.

You intend to keep the money in cash, (rather than investing it) regarding the tax relief of £720 as "interest"?

HL SIPP might suit your purpose.

What is an HL sipp please? Is HL a company?

tingly

Ps -is a sipp best or a ppension-and who with for such a short time? Thanks

tempus_fugit

HL is Hargreaves Lansdown. They do a SIPP (a self-invested pension) that is quite easy to set up and pay into, and there are no charges if you leave it in cash. If you choose to invest I think there are some charges then.

P.S. Other providers are available.

Mnd

There is a extensive thread on this site going into mega detail

Asghar

Mnd wrote: »

There is a extensive thread on this site going into mega detail

https://forums.moneysavingexpert.com/discussion/5580163

tingly

tempus_fugit wrote: »

HL is Hargreaves Lansdown. They do a SIPP (a self-invested pension) that is quite easy to set up and pay into, and there are no charges if you leave it in cash. If you choose to invest I think there are some charges then.

P.S. Other providers are available.

Thankyou so much for your very kind help- i really do appreciate it

tingly

Asghar wrote: »

https://forums.moneysavingexpert.com/discussion/5580163

Thankyou for the link- very kind