Tax relief on Private pension contributions

alsace-dave · 7 September 2017 at 1:06PM

As a non tax payer & over 55 years old, am I able to pay in the maximum £2880 out of my savings into a SIPP, get the 20% tax relief, then drawdown the full amount of it including the tax relief?

Asghar · 7 September 2017 at 1:16PM

Yes, have a read of this thread and keep an eye out for any charges.
http://forums.moneysavingexpert.com/showthread.php?t=5580163

xylophone · 7 September 2017 at 1:17PM

If you have no relevant earnings, then you can pay up to £2880 into a SIPP and the provider will then claim 20% tax relief.

You can take 25% tax free - the balance will be taxed as income in the tax year you withdraw it.

If together with other income (from a pension for example), this took you over your Personal Allowance (s), then you would end up paying tax.

Money_Help · 8 September 2017 at 9:16AM

You can also do the same thing and pay the same amount into a partners pension if they don't have any earnings.

Tax relief on Private pension contributions

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