Using carry forward

deepam

Hi,

I’m planning to deposit my unused allowance (carry forward) from last year into my SIPP before the upcoming budget. I have a couple of questions:

1. Will I still receive 40% tax relief on the carried-forward contribution?

2. There are rumours that tax relief could be changed to a flat 30% rate in the next budget. If I make the contribution before the budget announcement, can I assume I’ll still receive the 40% relief?

Any insights would be appreciated.

Dazed_and_C0nfused

deepam said:

Hi,

I’m planning to deposit my unused allowance (carry forward) from last year into my SIPP before the upcoming budget. I have a couple of questions:

1. Will I still receive 40% tax relief on the carried-forward contribution?

2. There are rumours that tax relief could be changed to a flat 30% rate in the next budget. If I make the contribution before the budget announcement, can I assume I’ll still receive the 40% relief?

Any insights would be appreciated.

1.  How can anyone know that given you have provided no information about your income in the current tax year.

2.  Only Rachel Reeves can answer that. And I doubt she will tell you before Budget day.

deepam

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.
2. I was wondering this because I contribute before the announcement.

Dazed_and_C0nfused

deepam said:

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.
2. I was wondering this because I contribute before the announcement.

Simple to some maybe but sadly I'm not in that camp 🥺

Marcon

deepam said:

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.
2. I was wondering this because I contribute before the announcement.

The question is simple, but unfortunately pensions aren't! 

1. If you have no employer, how can you have a salary? If you are contributing 150% of your (?)earnings, then will those earnings be at least £90K in this tax year? Is that 150% of earnings gross or net - because if you are actually paying in 150% you'd need to earning a lot more, because the provider will add tax at the basic rate. You'd only get 40% tax relief (in total) to the extent you've actually made the contributions from earnings taxed at 40%.
2. Nobody knows.

ColdIron

To use CF and receive tax relief you must first exhaust the current years allowance of £60,000 and have taxable earnings in excess of that to support that level of contribution. Is this you?

dunstonh

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.

If you are earning over £60k a year under salary, why don't you have an workplace pension?

Marcon

dunstonh said:

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.

If you are earning over £60k a year under salary, why don't you have an workplace pension?

No employer.

DRS1

deepam said:

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.
2. I was wondering this because I contribute before the announcement.

I am being dense but how can you contribute 150% of your salary to a SIPP?

Are you employed?  Is your employer going to make the contribution?

If you are making personal contributions the most you can contribute in a tax year and get tax relief on it is 100% of your taxable earnings.

Most SIPPs won't accept contributions on which you don't get tax relief.

Dazed_and_C0nfused

Marcon said:

dunstonh said:

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.

If you are earning over £60k a year under salary, why don't you have an workplace pension?

No employer.

I thought it was just no employer pension, although probably open to interpretation.

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.
2. I was wondering this because I contribute before the announcement.

Marcon

Dazed_and_C0nfused said:

Marcon said:

dunstonh said:

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.

If you are earning over £60k a year under salary, why don't you have an workplace pension?

No employer.

I thought it was just no employer pension, although probably open to interpretation.

1. Its very simple question. I am making 150% of my salary contribution into my SIPP. I have no employer or workplace pension.
2. I was wondering this because I contribute before the announcement.

I too did a double take - this 'simple' question is anything but!!