Ftse Relagation-Abrdn 29 August 2022 at 8:37AM in ISAs & tax-free savings 39 replies 532 views

masonic

Qyburn said:

eskbanker said:

Isn't that a hypothetical point though, in that we don't know what tax relief OP's pension gets?

Earlier he said he isn't paying tax. Although admittedly his explanations are sometimes hard to follow.

Are you perhaps labouring under the misconception that tax relief is contingent on the amount of income tax you pay, rather than your earned income?

Dandytf

masonic said:

Dandytf said:

@grumiofoundation

Both HL Isa and Natwest GIA are non Pension investment
If I were to move sums from either to SIPP,, then that would mean that each fund value wouldn't grow any further, unless this is wrong.

If you sell a fund in your GIA or ISA, pay the money into your SIPP, then buy the same investment, the only growth you'll miss out on are the few days between selling and re-buying. But it would close the door to you being able to access that money until 57+.

Is that one scenario where HL could potentially choose their closest match, if exact funds are not available inside HL Sipp.

thanks

masonic

Dandytf said:

masonic said:

Dandytf said:

@grumiofoundation

Both HL Isa and Natwest GIA are non Pension investment
If I were to move sums from either to SIPP,, then that would mean that each fund value wouldn't grow any further, unless this is wrong.

If you sell a fund in your GIA or ISA, pay the money into your SIPP, then buy the same investment, the only growth you'll miss out on are the few days between selling and re-buying. But it would close the door to you being able to access that money until 57+.

Is that one scenario where HL could potentially choose their closest match, if exact funds are not available inside HL Sipp.

thanks

If you are using HL for your ISA / GIA, then the same funds will be available in the HL SIPP. The only issue you might face is where a fund has soft-closed to new investors, or it otherwise isn't available to buy any more. This shouldn't apply to any of your holdings.

eskbanker

Qyburn said:

eskbanker said:

Isn't that a hypothetical point though, in that we don't know what tax relief OP's pension gets?

Earlier he said he isn't paying tax. Although admittedly his explanations are sometimes hard to follow.

That doesn't preclude tax relief though, net contributions of up to £2,880 per year attract tax relief even if not paying income tax.

Dandytf

@Qyburn

Disabled working 20 hrs per week ,hence Zero Tax.

thanks

masonic

eskbanker said:

Qyburn said:

eskbanker said:

Isn't that a hypothetical point though, in that we don't know what tax relief OP's pension gets?

Earlier he said he isn't paying tax. Although admittedly his explanations are sometimes hard to follow.

That doesn't preclude tax relief though, net contributions of up to £2,880 per year attract tax relief even if not paying income tax.

Is it not the case that you can get tax relief on gross pension payments worth up to 100% of your annual earnings? So if your gross annual income was £12,000, you could make up to £9,600 net pension contributions and your scheme could claim up to £2,400 basic rate tax relief? The £2880 figure would become relevant if earned income was below £3600.

eskbanker

masonic said:

eskbanker said:

Qyburn said:

eskbanker said:

Isn't that a hypothetical point though, in that we don't know what tax relief OP's pension gets?

Earlier he said he isn't paying tax. Although admittedly his explanations are sometimes hard to follow.

That doesn't preclude tax relief though, net contributions of up to £2,880 per year attract tax relief even if not paying income tax.

Is it not the case that you can get tax relief on gross pension payments worth up to 100% of your annual earnings? So if your gross annual income was £12,000, you could make up to £9,600 net pension contributions and your scheme could claim up to £2,400 basic rate tax relief? The £2880 figure would become relevant if earned income was below £3600.

Yes, I should have been clearer, the £2,880 tax relief figure is available to everyone, including non-earners, whereas earned income is the limit for others, for grossed-up contributions.

Dandytf

eskbanker said;

Yes, I should have been clearer, the £2,880 tax relief figure is available to everyone, including non-earners, whereas earned income is the limit for others, for grossed-up contributions.

Thanks as it does seem basic WP Pension scheme, though I'll avoid free tax deductible amount this time. 
I have one or two ideas to take from Isa funds early experience, which I could use to add funds to Sipp.

thanks mser's appreciated.

eskbanker

Dandytf said:

eskbanker said;

Yes, I should have been clearer, the £2,880 tax relief figure is available to everyone, including non-earners, whereas earned income is the limit for others, for grossed-up contributions.

Thanks as it does seem basic WP Pension scheme, though I'll avoid free tax deductible amount this time.

Again I really don't understand what you're saying here and it doesn't seem to relate in any obvious way to what I posted about tax relief - what's the connection with your feeling that your workplace scheme is basic and what do you mean by 'avoiding free tax deductible amount'?