pension recycling/lump sum and contributing £2880

jamesd

First, it's entirely unambiguous that you would be regarded as recycling the 8k tax free lump sum money. The TPS lump sum is clearly ordinary retirement planning so not an issue.

For the 8k the question is whether the 8k could put you beyond what the recycling rules allow.  The answer to that seems to be no.

First, you seem o be establishing the pattern of paying in £3,600 a year. Since that's the maximum you can do with tax relief there seems to be no scope for establishing that recycling has led to an increase in contributions beyond what you would have made anyway.

If the tax free 8k and the TPS  tax free lump sum exceed 5 years * 3600 / 0.3 (30%) = £60,000 then even if HMRC was to claim that your expected contribution was nil you'd be within the permitted 30% increase.

Mick70

What about using unrequired income from a DB pension , whilst still working , to pay extra into a new DC scheme ?

SomeMadeUpName

Mick70 said:

What about using unrequired income from a DB pension , whilst still working , to pay extra into a new DC scheme ?

Surely that's totally fine isn't it? The ongoing income coming out of the DB scheme is taxable income, you are free to do what you want with it. Even if not then who's to say that the DB income isn't going to living expenses and the earned income isn't what pays the DC contributions?

Mick70

SomeMadeUpName said:

Mick70 said:

What about using unrequired income from a DB pension , whilst still working , to pay extra into a new DC scheme ?

Surely that's totally fine isn't it? The ongoing income coming out of the DB scheme is taxable income, you are free to do what you want with it. Even if not then who's to say that the DB income isn't going to living expenses and the earned income isn't what pays the DC contributions?

What if received lump sum when the dB pension was triggered also ?  But can easily demonstrate where the lump sum is ?