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Gain for over 5os - too good to be true?

nrsql · 2005-09-10 21:09:24

Sorry if this has been posted butcan't find it. http://money.telegraph.co.uk/money/main.jhtml;jsessionid=LGZH4BF4PPRTNQFIQMFCM54AVCBQYJVC?xml=/money/2005/09/10/ccom10.xml&menuId=242&sSheet=/money/2005/09/10/ixfrontcity.html Over 50s can take out 25% of pension contributions each year tax free from Apr 6th. So for 40%…

Comments

nrsql Posts: 1,919 Forumite

5 October 2005 at 9:58AM

Which I think is the same as contributing 14,717, withdrawing 3,679.25 and getting 5886.80 tax relief (at 40%) i.e. paying 5150 to add 11,037 to the pension fund.
For basic rate 3237.74 tax relief.

Nothing to do with re-investing the 25% - just whether or not you are allowed to contribute the 14,717 and can afford the 5,150.

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