Paying into SIPP in 24/25, tax relief arrives in 25/26

pterri

I think I saw this mentioned a while ago but can’t find the answer? I may drop some cash into my SIPP this year, the tax relief will arrives in the next tax year. Will the HMRC consider that to count toward next years 25/26 allowance or will they  treat it as part of the 24/25 payment? It will be what it will be but just curious.

Hoenir

Date of payment to the scheme is what matters. 

dunstonh

pterri said:

I think I saw this mentioned a while ago but can’t find the answer? I may drop some cash into my SIPP this year, the tax relief will arrives in the next tax year. Will the HMRC consider that to count toward next years 25/26 allowance or will they  treat it as part of the 24/25 payment? It will be what it will be but just curious.

Tax relief is a relief, not a bonus.  So, your pension contribution is the gross amount, and that is the date that matters, and the tax relief, if not pre-funded, doesn't matter when it arrives.