SIPP Investment Ltd Company

Stirfry

Husband has had a good year and can put 60k into sipp directly from the company. He is 63 and does not hold a sipp at the moment. His accounts run August to August. Can he backdate 20k previous tax year and put in 40k current. I guess I am asking what is the most tax efficient way and if he can put in the full 60k?

Sibbers123

You can rewrite history, that would be considered fraud.

You may be able to carry forward any unused annual allowances from prior years. One would need a lot more information to say for sure.

Sibbers123

Can’t rewrite history! I’m on my phone...

Linton

I believe he probably can carry forward £20K allowance from last year and get an employers contribution of £60K this (personal) tax year. He cant pay into a pension for the 2017/2018 tax year.



Why "probably" ....
You can only carry forward allowance from years in which you were a member of a registered pension scheme. So was he a member of a registered pension scheme for 2017/2018? A SIPP would seem to be OK, but I guess he didnt have one then. Another option which also seems to be fine would be if he had an old deferred employers pension that had yet to pay out. If he had never been a member of a pension scheme then it appears he couldnt carry forward.


I have no idea why this requirement is in place. Perhaps someone can explain.

wjr4

He can only put in £40k unless he has paid into a pension in the last 3 tax years.

HappyHarry

wjr4 wrote: »

He can only put in £40k unless he has paid into a pension in the last 3 tax years.

That's not right.

He can carry forward any unused allowance for the past three years, providing he has been a member of a registered pension scheme (see Linton's comment above).

There is no requirement to have added to any such scheme within the past three years.

wjr4

HappyHarry wrote: »

That's not right.

He can carry forward any unused allowance for the past three years, providing he has been a member of a registered pension scheme (see Linton's comment above).

There is no requirement to have added to any such scheme within the past three years.

Oops, that is what I meant.. a member, not paid in.

nrsql

He can also put in another 40K in April and that could help depending on how well he does next year.

Stirfry

Just to clarify the meaning (He has been a member of a registered pension scheme) does that mean him personally or through the company. He was a Director of a previous company and paid into a personal pension through that company. When he reached 50 he took a lump sum and has been in receipt of monthly payments since.
Does this count?

Linton

Stirfry wrote: »

Just to clarify the meaning (He has been a member of a registered pension scheme) does that mean him personally or through the company. He was a Director of a previous company and paid into a personal pension through that company. When he reached 50 he took a lump sum and has been in receipt of monthly payments since.
Does this count?

I assume the monthly payment is an annuity. From what I have been able to find it would seem he should be OK. Perhaps the Pensions Advisory Service could provide a definitive answer.

Stirfry

Thanks will do