Is this recycling allowed?

Madeinireland101

My wife is about to finish work and reach the age where she can access her SIPP. For the last few years we have built it up by contributing her salary into the SIPP. I understand when she stops working and is not earning we can contribute £2880 per year and this is then grossed up to £3600 as with contributions we have made in the past.
When she accesses her SIPP her withdrawals will be tax free as it will be well under her personal allowance.
I remember looking at the issue of pension contributions and recycling a few years ago and I am aware you need to be careful not to fall foul of the recycling rules with HMRC but I can no longer recollect if the new contributions we make as described above are allowed or not.
Can it really be true that we can make a “free” £720 every year without issue or is that wishful thinking?
Thanks...

Marcon

Madeinireland101 said:

My wife is about to finish work and reach the age where she can access her SIPP. For the last few years we have built it up by contributing her salary into the SIPP. I understand when she stops working and is not earning we can contribute £2880 per year and this is then grossed up to £3600 as with contributions we have made in the past.
When she accesses her SIPP her withdrawals will be tax free as it will be well under her personal allowance.
I remember looking at the issue of pension contributions and recycling a few years ago and I am aware you need to be careful not to fall foul of the recycling rules with HMRC but I can no longer recollect if the new contributions we make as described above are allowed or not.
Can it really be true that we can make a “free” £720 every year without issue or is that wishful thinking?
Thanks...

No recycling problem with the level of contribution you propose.

Croeso69

No, what you are proposing is fine.

Dazed_and_C0nfused

It isn't when she stops working that matters, it is only from the tax year when her pensionable earnings are £3,600 or less that the £3,600 limit applies.

I don't think she has anything to worry about with regard to recycling.

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm133810#IDAF5PQB

Madeinireland101

Thanks everyone for the confirmation. Yippee a free £720 per year then!!!