📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

SIPP contribution confusion

RiverGuy
RiverGuy Posts: 6 Forumite
First Post First Anniversary
Hi there
I have just transferred my old style personal-pension to an online SIPP provider. The transfer was done as cash, not in-specie. Now I have a cash lump sum (over £40,000) credited to this new SIPP account from which I can chose a portfolio in which to invest.
My question is: For tax purposes, is this lump sum treated as part of contributions from my earnings for the tax year? Or can I simply invest the whole amount (in my chosen portfolio type) and not have to worry that this puts me over the personal allowance (£40,000?) for tax-relief contributions to a SIPP? 
Many thanks.

Comments

  • Albermarle
    Albermarle Posts: 28,083 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Transfers do not attract any further tax relief and do not count towards your annual allowance for this year .
    They have no effect whatsoever on your ability to make new pensions contributions ( + tax relief ) his tax year.
  • coyrls
    coyrls Posts: 2,509 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It's a transfer not a contribution.  Also once it's in a SIPP as cash it's in your pension, investing cash that is already in a pension doesn't trigger any sort of event.
  • Thank you both for your replies. That's clear now!  :)
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.3K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 257.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.