Pension max

Buzzard1985

I am planning to buy a few flats to rent out- zero mortgage.  Then eventually sell them and use the money towards pension.   
I currently use auto-enrollment and a Life ISA-full max £4k per year.       Am I correct in saying I can only pay in £40,000 a year to my pension?  Would this mean my property sales would need to be parked in the bank rather than everything all into a pension for an annuity?

This is way down the line- just trying to figure if more than £40k can be deposited into a pension and only tax relief up to annual salary-beyond this zero.
Thanks

Dazed_and_C0nfused

How much do you earn from a job or self employment?  Not the rental income.

Marcon

Buzzard1985 said:

I am planning to buy a few flats to rent out- zero mortgage.  Then eventually sell them and use the money towards pension.   
I currently use auto-enrollment and a Life ISA-full max £4k per year.       Am I correct in saying I can only pay in £40,000 a year to my pension?  Would this mean my property sales would need to be parked in the bank rather than everything all into a pension for an annuity?

This is way down the line- just trying to figure if more than £40k can be deposited into a pension and only tax relief up to annual salary-beyond this zero.
Thanks

How are you planning to pay for the flats, given that a couple of weeks ago you posted this:

My partner has no job now following regional lockdown.   She says she can't get universal credit due to my earnings- so I have to carry the can.    Is the DWP open to be challenged on this?  Place untold stress on my fiances- we still wouldn't get any help as I earn too much.    Now I might default on a loan-might-unsure as this has just been put before me.

If your partner not being able to claim UC made you worry about defaulting on a loan, are you being remotely realistic with your plans, even if they are 'way down the line'?


Having sounded that note of doom (sorry!), here's a more constructive thought to factor in if you are looking at an annuity in your old age. It's often overlooked that anyone can buy an annuity at any time with their own money - doesn't have to come from a pension plan. One of the advantages of this approach is that you get more favourable tax treatment of the payments you receive from the annuity - much of each payment is treated as a return of capital and isn't subject to tax.

Good explanation here and worth reading: https://www.sharingpensions.co.uk/pension_annuity9.htm

Buzzard1985

Dazed_and_C0nfused said:

How much do you earn from a job or self employment?  Not the rental income.

£30,000 pa

Dazed_and_C0nfused

Buzzard1985 said:

Dazed_and_C0nfused said:

How much do you earn from a job or self employment?  Not the rental income.

£30,000 pa

Am I correct in saying I can only pay in £40,000 a year to my pension?

No.  You can contribute £30,000.  If this is relief at source then that would be £24,000 from you plus £6,000 basic rate tax relief.

NottinghamKnight

OP - how will you manage capital gains on the properties in years to come?