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Taxing savings or selling funds?
Comments
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Well it does make a material difference to the figures 😀ColdIron said:How did I not know, when constructing the tables, that this was coming (again)
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My figures, at my particular set of incomes, using the 21700 and 20000, did take into account the allowances 0
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As far as I'm aware drawing from a final salary scheme has no impact on your contributions to a DC scheme. It's only drawing from a DC scheme that affects the level of contributions which has increased to £10k I believe.talexuser said:Good point, I can only pay max of 3600 into the SIPP since already drawing a final salary scheme, so that's the max the 40% threshold can gain.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Probably due to relevant earnings and therefore limited to £2880 net/£3600 grossjimjames said:
As far as I'm aware drawing from a final salary scheme has no impact on your contributions to a DC scheme. It's only drawing from a DC scheme that affects the level of contributions which has increased to £10k I believe.talexuser said:Good point, I can only pay max of 3600 into the SIPP since already drawing a final salary scheme, so that's the max the 40% threshold can gain.'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.0 -
Tax relief is limited with no salary income, pension income is not the same, at least that's what the SIPP provider tells me.0
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Correct, pension income may mean you can afford to pay more into a pension but the limits for how much you are allowed to contribute don't include pension income.talexuser said:Tax relief is limited with no salary income, pension income is not the same, at least that's what the SIPP provider tells me.
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That is correct, pension income does not count as relevant earnings for tax relief purposes. Hence you are limited to a £2880 net/£3600 gross contribution per year.talexuser said:Tax relief is limited with no salary income, pension income is not the same, at least that's what the SIPP provider tells me.
https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100#earnings
'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.0 -
You could put in more I believe, just not get tax relief on it, which rather negates the purpose if already have ISA and GIA?0
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