Back-dated contributions to a SIPP

OBG

I am going to start a SIPP and have been told it was possible to back-date contributions for a period of three years.


Does anyone know if these rules still apply?


Kind Regards


OBG

Spreadsheetman

Yes, but only if you had a "registered/qualifying pension" for those periods that you had contributed less than the maximum to. The contribution is also limited by your salary income in the year that the contribution is made.


See: http://www.hmrc.gov.uk/tools/annualallowancelimit/

Paul_Herring

OBG wrote: »

I am going to start a SIPP and have been told it was possible to back-date contributions for a period of three years.

The google term you're after is 'pension carry forward.'

Aegis

You can't back-date contributions to a previous year, but you can increase your allowance for this year if you didn't use all of your allowance from previous years. This difference means that you need to have the earnings this tax year for any tax relief you are hoping to achieve.

AnotherJoe

OBG wrote: »

I am going to start a SIPP and have been told it was possible to back-date contributions for a period of three years.

Does anyone know if these rules still apply?

Kind Regards

OBG

What is your income going to be this tax year ?

dunstonh

Do you earn over £40,000 a year?
Did you have a registered pension plan previously? (even one you didnt pay into for years)

OBG

My salary is approximately 50K.


I have an existing defined benefits work related pension and the total pension input amount has been in the region of 20k a year.










I am being made redundant shortly and am 51 years of age if any of this helps.

AnotherJoe

OBG wrote: »

My salary is approximately 50K

I have an existing defined benefits work related pension and the total pension input amount has been in the region of 20k a year.
I am being made redundant shortly and am 51 years of age if any of this helps.

You'll need more specialist advice but ISTR the most you can pay in is £50k gross minus whatever you've put in (eg excluding employers contribution).

But in any case £50k gross comes to £40k net. You cant put more than that in and obviously it will be less than that minus existing contributions. So backdating 3 years is a bust ... (thinks ....doh!) unless you can use your redundancy money. Lets say your income plus redundancy comes to £100k this tax year then you could potentially pay up to £80k. Worth paying an IFA for a hour or twos advice Id say.

OBG

Thanks everyone for the replies, much appreciated.

zagfles

The taxable part of redundancy counts as relevant earnings. This article is quite helpful: https://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/member-contributions-tax-relief-and-annual-allowance/