Recycling help

Scallypud

I was planning on taking 4k TFLS out of one of my pension pots for Xmas.
I had planned to put 5K into my another pension but was concerned i'd be breaking the recycling rules.
Can anyone please advise

Thanks in advance

Phossy

From the site "Unbiased" Pension recycling: what is it and what are the rules? | Unbiased

So, when could you be affected by the pension recycling rules?

If all of the things below happened, you could incur a tax charge from HRMC: 

• You take a tax-free  from a pension 

• Contributions paid into a pension are larger than they would have been, because you have added some tax-free cash 

• After assessing your case, HMRC have decided that the recycling was pre-planned

• The amount of tax-free cash you take is more than £7,500, when added to any tax-free cash taken in the previous 12 months

• The amount of all additional contributions exceeds 30% of the tax-free cash 

HMRC is generally only concerned if they see an increase in excess of 30% on expected contributions. Only then will they consider applying the extra tax charge. 

Linton

Scallypud said:

I was planning on taking 4k TFLS out of one of my pension pots for Xmas.
I had planned to put 5K into my another pension but was concerned i'd be breaking the recycling rules.
Can anyone please advise

Thanks in advance

The recycling rules do not apply if the amount involved is below £7500.  See https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm133810#IDAF5PQB so you dont need to investigate further.