Putting redundancy money into Pension??

Xbigman

Don't forget that if you get a job in the 21/22 tax year that pays more than the personal allowance of 12.5k then 75% of what you take out of the SIPP in the 21/22 tax year is taxable. It's still worth it but the gain is hundreds not thousands.

Darren

bearofverylittlebrain

Xbigman said:

Don't forget that if you get a job in the 21/22 tax year that pays more than the personal allowance of 12.5k then 75% of what you take out of the SIPP in the 21/22 tax year is taxable. It's still worth it but the gain is hundreds not thousands.

Darren

But you get upto 25% of the pot tax free regardless don't you? My pensions are not in a SIPP, I have a company DB which I would leave alone, it pays when I am 60, a stakeholder pension (the largest pot) with Scottish Widows, and my most recent workplace pension with Royal London. I would probably put the money into SW as I think the fees are less the RL.
I could still earn again having taken some tax free pension lump sum and just pay normal income tax on earned income surely? Or are you saying that if I take the lump sum, that eats into my personal allowance for the year? I thought it was completely tax free

Dazed_and_C0nfused

A TFLS is ignored for income tax purposes, it won't have any impact on your Personal Allowance.