Previous years unused pension

spock007

Yes, only if I sell. I'm invested in a company in takeover bid and expect investment to cash out. So will face CGT.
I don't use cash ISA and my investment ISA is maxed out. 
If CGT rises to 40% (in line with income bands) next year I do not want to be paying that (this company sale could be tomorrow or it could drag to next year).

Dazed_and_C0nfused

spock007 said:

Right and can I cherry pick years or does it have to start from furthest back (2017-2018)?
So if I claim for 2018-2019 say.... I will get tax relief back according to my income that year (also I note in Scotland the income tax bands have changed frequently the last few years, making this a little more complicated).

Tax relief on pension contributions is only ever due for the tax year the contribution is made in.

You cannot get tax relief for 2018:19 (or 2017:18 or 2019:20) now.

spock007

Thank you, understood

Alexland

This thread seems to be a continuation of your previous thread on the ISA forum.
https://forums.moneysavingexpert.com/discussion/6221974/tax-minimisation
I think we need to treat where the money came from (a forced sale of £60k of shares) with what you then do with it having already made £20k ISA and £40k pension contribution. How much of the £60k is still available after making those contributions and paying any CGT due? Would you normally make enough pension contribution to avoid higher rate tax or could this be dripped on over future tax years to save higher rate rather than just basic rate on some of it this tax year?

spock007

Yes maybe I should have combined the threads - apologies. 
The £20k ISA and £40k pension this year (actually £38.4k pension this year...) still leaves me with approx £50k or so which is what I have invested in trading account. I'm just looking into my P60 and pension payments for last few years.

DT2001

Your pension administrator should be able to confirm your contributions for previous years so you can check the extra can put in.

You then put in the net of BR tax amount and HL will add the tax relief automatically.

I am unsure if you need to contact HMRC as I assume having put £40k in already (for this tax year) your tax relief on the extra £10k is limited to BR tax. (£70k income - 1st £20k of pension contributions effectively takes you into BR tax band. Any extra payments thereafter have relief at BR).

Alexland

Does your workplace pension operate salary sacrifice as this would also save the NI so would be more efficient than making a direct SIPP contribution. Also if under 40 have you considered a S&S Lifetime ISA from next tax year if you have already used this year's allowance.

spock007

Yes I get salary sacrifice through work but only at source (if that's the correct terminology). They wont give any extra salary sacrifice if I voluntarily add, I believe. 

I'm under 40 and have considered LISA, yes. But have to take money out at 60, right? 

spock007

I'm trying to decide between HL and AJ  Bell for SIPP. 
AJ Bell cheaper but I'm with HL (and I know HL do the LISA...). 
It might be a bit much for me to put money into LISA in subsequent years as I put so much into pension and share scheme at work - I'd be left with not much but it's a consideration to make, thank you.

spock007

DT2001 said:

You then put in the net of BR tax amount and HL will add the tax relief automatically.

Is this correct for both SIPP and LISA? 
Assume I was to get 20% tax relief on SIPP. I put in £80 and HL make it show up as £100? 
Is it similar for S&S LISA ?

So the platform adds the relief element without me having to contact HMRC? Not sure how that works for Scotland with different tax bands. That's why I thought I have to put in the £100 and claim the tax back (get a cheque from HMRC)?