Pre retirement advice.

Dunnsdale

My wife is thinking of retiring at the end of September.Is there anything  we could be doing to take advantage her being a higher rate tax payer.Possibly investing a lump sum in a SIPP perhaps,to take advantage of the 40% tax relief.Any suggestions or advice would be greatly appreciated.

coyrls

Given that she will only be working for half the tax year, will she be a 40% tax payer for 2020/21?  To be honest it's a bit late to be thinking about tax relief on pension contributions now.

Albermarle

A higher rate taxpayer should put as much in their pension as they can afford/to reduce HRT paid to as close to zero as possible/ within the £40K annual allowance.
If she has not been doing that for the last few years , then she has missed the boat I am afraid .

Dunnsdale

Thank you both for the prompt response and advice.Much appreciated.

[Deleted User]

Investing a lump sum won't get HRT into the SIPP just the normal tax relief (normally credited 6-8 weeks later)
You reclaim the HRT element on self assessment (well at least I did), you put down your gross pension contributions.
I got a refund into my bank account 6 days after I filed the self assessment (this month)