Pension recycling after 5yr rule ?

CRAIGSVILLE1

Hi all,

I cant seem to find an answer to this, or I'm not looking hard enough
Is there any rule for recycling any amount of the TFLS up to £40K in the 3rd tax year after taking the TFLS  if I haven't gone into MPAA yet?? 
If all the rules 2yrs b4 + after the tax year when the TFLS is taken are met, can I recycle any amount  up to £40K back into my pension without any backlash from HMRC? 
Forgot to say, I wouldn't have an income after taking the TFLS

Thanks

Craig

jamesd

The five year rule is two years before, tax year of taking and two years after. Third tax year after and later are not covered by it and only the usual limits apply.

With no income after taking the tax free lump sum you'll be limited to no more than 2880 net, 3600 gross pension contributions for the later years. You need pay exceeding that to allow higher contributions. You need to be within both pay (plus employer contributions) and annual allowance, independently checked.

If you've gone over pay in the last few years it's not hard to correct. Tell the pension firm your actual annual gross pay and ask them for a "refund of excess contributions lump sum". You have six years from the excess year to get it done and it's routinely used by people who have to estimate income, no penalties and should be no hassle.

CRAIGSVILLE1

Thanks James,

I stupidly forgot I would have to have an income to put more in - Doh