Move from S&S ISA to SIPP the best option

Albermarle

Corbula said:

Dazed_and_C0nfused said:

Daliah said:

The limit is about the amount on which you receive tax relief. You can pay as much as you like into a pension but most people will only get tax relief on max £40,000 or their annual income, whichever is the lower. There is a "carried forward" option which allows you to use unused contributions from the last three years - this may apply in your case.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/the-annual-allowance

As a general question: what are you hoping to achieve by converting your ISA into a SIPP?

The op will be limited by their earnings.

Cannot see carry forward being relevant here.

If they put their £20k into the SIPP it will get £5k in basic rate tax relief added so they have £25k.

When that is then taken as a pension is tax free and 75% is taxable.  

End result is a 6.25% benefit just from the combination of tax relief on the way in and TFLS on the way out.

If my salary is £29k the the pension amount at the end will be £25k so lower than my earnings what's the limit here? That should be OK? 

You can put up to £29K gross in your pension ( includes basic rate tax relief) .

As you already contribute 5% of you salary to your workplace pension ( £1450 gross) , then the maximum additional sum you can add is £27, 550 gross.
So you can add £22,000 ( and tax relief of £5,550 will be added to this )