In drawdown but still paying in - question

0779mike

I have been in drawdown on my SIPP for a couple of years and I have taken an initial 25% tax free lump sum from my retirement pot and a lump sum in each of the following two years.

I understand that I can continue to pay into it even though I am not now in employment,  I looked it up cos I try and stay under the 40% income tax threshold and in error I have just drawn down too much for the 23/24 tax year. Is there a £4000 per annum limit on how much you can pay back in ?

A further question occurs to me, can I take 25% of anything I pay in now as a tax free lump sum ? 

DavidT67

With no relevant earnings, (Pension doesn't count), then you can pay in £2880 and get tax relief topup to £3600, which is limit for non-earners.

£4K was the old Money Purchase annual allowance, that's now £10K.

Yes, rinse and repeat, with TFLS.

Dazed_and_C0nfused

And you will need to let HMRC know about the contribution if you need to claim some higher rate tax relief.