Large pension contribution immediately before retirement. Tax relief implications?

Financial_Headache

Is it possible to make a £60k pension contribution in April, start drawing down pension in May with a plan to take £60k plus during the year and get full tax relief on the pension contribution?

artyboy

If you have enough relevant income for the tax year you intend to make the £60k contribution, then yes...

And of course the £60k would have to include the tax relief, unless you were utilizing prior year carry forward (and again you would have to have enough relevant income in the current tax year you were making the contribution)

leosayer

Will your contribution be before or after 5th April (the end of the tax year)?

To make such a contribution, you need to have eligible pensionable earnings of £60k in the tax year you make your contribution.

Financial_Headache

Pension contribution would be after 5th April.

Financial_Headache

I think I have discovered the answer myself. Income from a pension doesn’t count as relevant income to qualify for pension tax relief.

Dazed_and_C0nfused

Financial_Headache said:

I think I have discovered the answer myself. Income from a pension doesn’t count as relevant income to qualify for pension tax relief.

💯% correct.