Sipp contribution when receiving DB and State Pension

charleycam

Good Morning,
I'm in receipt of my state pension and defined benefit company pension. I have a DC workplace pension that I have not yet accessed and intend to maintain this tax sheltered.

I would like to make use of tax benefits by continuing to contribute to my existing DC workplace pension or set up a new SIPP, My income from the defined benefit pension and state pension exceeds my personal allowance and therefore paying income tax at 20% on this. If allowed I would contribute to offset the tax I'm paying to zero.

I retired from paid employment in August 2018.

Could I also further contribute to the above mentioned DC pension or SIPP by making use of my last 3 years of unused annual allowance, Is this allowed?


My intention is to not take any benefit from the value of the workplace pension and SIPP, but use them as a vehicle to avoid some inheritance tax.


Thank you in advance.

Mnd

I think as a non earner you Are limited to paying in £2880 net, which is gross £3600 per annum.
You can take 25% tax free which gives a gain of £180 I think if You are a basic rate tax payer.but according to your post you don't want to do this anyway
I'm not sure about the carry over, I don't think so though

cloud_dog

charleycam wrote: »

I retired from paid employment in August 2018.

Could I also further contribute to the above mentioned DC pension or SIPP by making use of my last 3 years of unused annual allowance, Is this allowed?

Pension contributions are based on earnings, so depending on how much you earned from April to August 2018 you could contribute that amount (excluding existing contributions etc). In theory you could make use of previous years unused allowance IF your five month employment provided you with sufficient 'earnings' to allow you to do so.