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Question on HMRC Pension Recycling Rules
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TIALTNGO
Posts: 9 Forumite
I am due to receive my 25% Tax Free Lump Sum in Sept 2025 for around £65K.
The remainder of my pension pot will go into drawdown,
As I will be remaining to work on P/T, £100.00 of my current pension pot will remain uncrystallised and I will be continuing to make payments via Salary Sacrifice and Individual Contributions.
Over the last 4 years my total contributions via salary sacrifice, individual contributions and tax relief are as follow
Tax Year Total Pension Payments
For the current tax year all contributions are currently at
My question is around ensuring I don't fall fowl of pension recycling rules post the tax free lump sum.
Will I be able to continue paying my normal average total annual contributions of circa £15K per annum without breaching the recycling rules,
The remainder of my pension pot will go into drawdown,
As I will be remaining to work on P/T, £100.00 of my current pension pot will remain uncrystallised and I will be continuing to make payments via Salary Sacrifice and Individual Contributions.
Over the last 4 years my total contributions via salary sacrifice, individual contributions and tax relief are as follow
Tax Year Total Pension Payments
| 2021/2022 | £14,738.45 |
| 2022/2023 | £15,342.28 |
| 2023/2024 | £14,556.32 |
| 2024/2025 | £15,035.46 |
For the current tax year all contributions are currently at
| £7,159.76 |
My question is around ensuring I don't fall fowl of pension recycling rules post the tax free lump sum.
Will I be able to continue paying my normal average total annual contributions of circa £15K per annum without breaching the recycling rules,
0
Comments
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Should be fine at that level......Gettin' There, Wherever There is......
I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple
1 -
In simple terms as your contributions have not increased a lot around the time you took the tax free lump sum, then it is not an issue.1
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