Using carry forward

Marcon

DRS1 said:

Marcon said:

DRS1 said:

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?

By using carry forward - assuming OP has scope/adequate earnings to do so in the tax year and isn't subject to tapering, hasn't triggered the MPAA etc. The question is hopelessly short on essential detail.

But you cannot get tax relief on more than your earnings.  I accept that I am assuming he is using salary to mean taxable earnings.

If his taxable earnings for 25/6 are £90k he can't contribute gross £135k to the SIPP can he (even if he had £75k annual allowance to carry forward from past years)?

Maybe the employer could if there is one.

As you say, it relies on there being an employer making contributions...or other earnings such as bonuses.

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.

The more this thread develops the stranger the concern in point 2 seems to be.

A flat rate of 30% would be of significant benefit to the op.  Not that I would put my mortgage on a flat rate happening any time soon.

Isthisforreal99

To further complicate matters If the funds are coming from a TFLS the OP said they were taking imminently on another thread then they may want to read up on recycling rules.

Qyburn

deepam said:

Imagine my salary is 50K to make calculations simple. And I want to contribute 75K into a SIPP. My question is that I will get tax relief - 40% of 75K?

Maximum contribution you can make would be £40k net, to which the scheme would add basic rate tax relief making £50k gross.

Aretnap

deepam said:

Imagine my salary is 50K to make calculations simple. And I want to contribute 75K into a SIPP. My question is that I will get tax relief - 40% of 75K?

That would give you an answer which is simple ("No") but also quite possibly wrong, or not relevant to your circumstances.

For anyone to comment meaningfully you really need to give us some real numbers, including:

How much you expect to earn from employment (including self employment, if applicable) this year 

How much you expect to earn from any other sources (interest, rental income, pensions if relevant etc)

How much you have already paid into your workplace pension, and how much your employer has contributed.

What you can and can't do depends on your own circumstances. If you can't provide them then we're left just making wild guesses at hypothetical, which isn't very helpful to anyone.