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SIPP contribution confusion
RiverGuy
Posts: 6 Forumite
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.
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.
0
Comments
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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.2 -
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.
1 -
Thank you both for your replies. That's clear now!
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