Pension Contributions

[L1OFF]

Hi, I wonder if somebody could answer the following pension contribution question.
I have a personal pension (I'm not in a company scheme and payments into my pension are after tax has been deducted) which I had to take some money from earlier this year (cottage roof needed replacing) so I can now only make a max contribution of £4000 in each tax year. I'm planning on a lump sum before the end of the current tax year and again after April.

I'm a 40% tax payer so the tax relief on the contribution will be claimed by the pension provider at the basic rate and I'm assuming I would enter the pension contribution on my self assessment form. My query is how much do I give the pension provider? £4000-40%? (£2400) .

[Stay in Bed Instead]

£3200.

I assume the payments you received from your pension arrangement were flexi-access drawdown and not just tax free cash or capped drawdown.

[L1OFF]

Thank you, much obliged.

[JulianPH]

Also, don't forget to put the contribution on your tax return to claim the additional £800 of higher rate tax back directly.

[JulianPH]

Jasey_ said:

Are you sure you can only put in £4k per annum.

Depending on how you took the money out that may not be the case.

As I understand it if you took a Pension commencement lump sum (the 25% tax free everybody talks about) for the roof repair you can continue to pay in above the £4k limit.

If you have actually started drawing from the remainder of your pot then the £4k limit does apply.

Very good point mate.

[JulianPH]

Jasey_ said:

JulianPH said:

Jasey_ said:

Are you sure you can only put in £4k per annum.

Depending on how you took the money out that may not be the case.

As I understand it if you took a Pension commencement lump sum (the 25% tax free everybody talks about) for the roof repair you can continue to pay in above the £4k limit.

If you have actually started drawing from the remainder of your pot then the £4k limit does apply.

Very good point mate.

I've been paying attention to that Nik fella

ps : "Hello Mr Jasey_,

Thank you for applying for the Private Client Pension"

Edited by Jasey_ on Monday 17th February 11:22

You certainly have!

I hadn't realised that! Welcome as a Private Client!

Are you going to one of the IM British GT races? If so I'll get you a beer!