Pension contributions when all allowance used

choccielover

If all carry forward is used, and all the annual allowance is used, if i want to continue investing for my future am i able to contribute to a pension and request that no tax relief is claimed and what are the drawbacks of doing this rather than investing elsewhere.

Many thanks for any suggestions in advance.

HappyHarry

choccielover wrote: »

If all carry forward is used, and all the annual allowance is used, if i want to continue investing for my future am i able to contribute to a pension and request that no tax relief is claimed and what are the drawbacks of doing this rather than investing elsewhere.

Many thanks for any suggestions in advance.

You can payback the tax relief through your tax return, or possibly ask your pension provider to pay the tax from your pension using "Scheme Pays".

However, unless you are forced to, why would you? The key advantage of a pension is the tax relief on funds going in.

It is quite likely you will pay income tax on taking funds out of the pension eventually.

So, in your situation, you pay tax on the way in and on the way out. Very rarely is this likely to be beneficial.

Far better would be an ISA, or even an unwrapped investment where the money you put in is already taxed, but there is no tax penalty (roughly speaking) on the way out.

triplea35

If your under 40, you could consider a Lisa, contributing £4k a year and getting a 25% uplift from HMRC. Not to subject to tax on withdrawal at 60.