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Tax free redundancy payment Qs

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If I am made redundant in the current financial year (I pay 40% tax) can I put the £30k tax free element into my pension fund and would it reduce my 40% tax burden when I do a self assessment (my current pension contributions do not cover all the 40% tax burden and there is still £30k ‘available’)?
Thanks in advance
Russ

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  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 13,987 Forumite
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    If it is tax exempt then the £30k is irrelevant for pension contribution purposes 

    But if having that £30k means you can afford to make additional qualifying contributions then yes, that could help minimise your tax liability.

    You are probably overthinking things.
  • irharris
    irharris Posts: 13 Forumite
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    I was made redundant last year - the company would not allow me to use salary sacrifice to pay the £30k tax free into my pension.

    The £30k plus the pension tax free lump sum (I'm 55) has allowed me to hold my annual pension draw down below £12.5k, avoiding tax - my primary pension is a DB scheme I'll cut in at 60 - the money being draw down and the tax free lump sum are coming from the redundancy payment I put into the pension
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