SIpp contribution amount limit in current tax year

Maryhill

I am a lower rate taxpayer and have a sipp that is crystallised and in drawdown

 

I have some spare cash and would appreciate if someone could advise the amount I  can pay in to said sipp ie £2880   or £8000 ? ( excluding tax relief)

many thanks 

Marcon

Maryhill said:

I am a lower rate taxpayer and have a sipp that is crystallised and in drawdown

 

I have some spare cash and would appreciate if someone could advise the amount I  can pay in to said sipp ie £2880   or £8000 ? ( excluding tax relief)

many thanks 

What are your gross earnings in the current tax year?

Maryhill

£12 thousand 

af1963

Is that £12k earnings from employment ? Or is it pension drawdown ? or tax free cash?

You can contribute ( gross) up to your 'relevant earnings' which is basically employment earnings and some related benefits in kind. Pensions don't count. So if the 12k is "relevant earnings" you could potentially contribute 9.6k net / 12k gross. But ... you may also be limited by the reduced money purchase annual allowance if you've taken any taxable drawdowns from your pension. If so, your limit would be reduced to 8k net / 10k gross.

The limit also has to cover any personal contributions you've made, or will make, to a work pension.

If you don't have employment earnings, your limit will be £2880 net / £3600 gross.

Maryhill

af1963 said:

Is that £12k earnings from employment ? Or is it pension drawdown ? or tax free cash?

You can contribute ( gross) up to your 'relevant earnings' which is basically employment earnings and some related benefits in kind. Pensions don't count. So if the 12k is "relevant earnings" you could potentially contribute 9.6k net / 12k gross. But ... you may also be limited by the reduced money purchase annual allowance if you've taken any taxable drawdowns from your pension. If so, your limit would be reduced to 8k net / 10k gross.

The limit also has to cover any personal contributions you've made, or will make, to a work pension.

If you don't have employment earnings, your limit will be £2880 net / £3600 gross.

Its 12l from drawdown on my sipp

Marcon

Then it isn't 'earnings'. If you have no earned income, your gross tax-relievable contribution to a SIPP is £3,600 i.e. £2,880 with the provider adding a tax 'top up' at basic rate, provided you have not yet reached your 75th birthday.