Are company contributions to an employee's SIPP allowed at age75+?

BobWelham

For an employee (John, say) who is on PAYE at age 75+, can John's employer make company pension contributions to his SIPP?
I understand that John can not make personal SIPP contributions at age 75+, but as far as I understand there is no age limit on company contributions.
Does it make any difference if John is also a director and part owner of the company?
Thanks.

dunstonh

Age 74 is the maximum age for pension contributions.  At age 75 onwards, it is too late.

Marcon

dunstonh said:

Age 74 is the maximum age for pension contributions.  At age 75 onwards, it is too late.

Not so. The company can continue to make contributions and set them against corporation tax, subject to the usual rules of claiming CT relief.

Brynsam

dunstonh said:

Age 74 is the maximum age for pension contributions.  At age 75 onwards, it is too late.

Wrong. Taken from https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-contributions-qa/#

Q: Can an employer receive tax relief on a pension contribution paid for an employee who has attained age 75?

A: The usual corporation tax relief rules apply. There is no age restriction for an employer pension contribution, which can be paid on behalf of an employee of any age. Providing the wholly & exclusively test is satisfied, then the employer will receive corporation tax relief in the usual manner.

NB there is no tax relief on personal contributions or third party contributions paid by or in respect of an individual who has reached age 75.

Tealblue

Brynsam said:

dunstonh said:

Age 74 is the maximum age for pension contributions.  At age 75 onwards, it is too late.

Wrong. Taken from https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-contributions-qa/#

Q: Can an employer receive tax relief on a pension contribution paid for an employee who has attained age 75?

A: The usual corporation tax relief rules apply. There is no age restriction for an employer pension contribution, which can be paid on behalf of an employee of any age. Providing the wholly & exclusively test is satisfied, then the employer will receive corporation tax relief in the usual manner.

NB there is no tax relief on personal contributions or third party contributions paid by or in respect of an individual who has reached age 75.

Wonder how many people have been given incorrect advice by their accountants, IFAs etc?

Marcon

Probably a similar number to those who have financial advisers unaware of the fact stakeholder pensions have to accept transfers in from any other UK registered pension scheme (and that stakeholder pensions are still very much available and open for business including new business)!

Thrugelmir

Tealblue said:

Brynsam said:

dunstonh said:

Age 74 is the maximum age for pension contributions.  At age 75 onwards, it is too late.

Wrong. Taken from https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-contributions-qa/#

Q: Can an employer receive tax relief on a pension contribution paid for an employee who has attained age 75?

A: The usual corporation tax relief rules apply. There is no age restriction for an employer pension contribution, which can be paid on behalf of an employee of any age. Providing the wholly & exclusively test is satisfied, then the employer will receive corporation tax relief in the usual manner.

NB there is no tax relief on personal contributions or third party contributions paid by or in respect of an individual who has reached age 75.

Wonder how many people have been given incorrect advice by their accountants, IFAs etc?

How many people continue to remain employed when over 75 and wish part of their remuneration to be paid into a pension scheme. One suspects not a huge number. 

barnstar2077

Thrugelmir said:

Tealblue said:

Brynsam said:

dunstonh said:

Age 74 is the maximum age for pension contributions.  At age 75 onwards, it is too late.

Wrong. Taken from https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/pension-contributions-qa/#

Q: Can an employer receive tax relief on a pension contribution paid for an employee who has attained age 75?

A: The usual corporation tax relief rules apply. There is no age restriction for an employer pension contribution, which can be paid on behalf of an employee of any age. Providing the wholly & exclusively test is satisfied, then the employer will receive corporation tax relief in the usual manner.

NB there is no tax relief on personal contributions or third party contributions paid by or in respect of an individual who has reached age 75.

Wonder how many people have been given incorrect advice by their accountants, IFAs etc?

How many people continue to remain employed when over 75 and wish part of their remuneration to be paid into a pension scheme. One suspects not a huge number. 

Well, they are probably saving for when they are old! :  )

BobWelham

Thrugelmir said:

How many people continue to remain employed when over 75 and wish part of their remuneration to be paid into a pension scheme. One suspects not a huge number. 

It can be an effective way of avoiding IHT since once the money is in a pension pot it is immediately outside the beneficiary's estate.
I appreciate that shares in an incorporated family business are also inherited free of IHT so in this case it might be better to leave cash in the business.