Starting a SIPP

[CaptainSlow]

So, looking at purchasing commercial property and wrapping within a SIPP. I have a question on how I get the funds into the SIPP. I could transfer an existing policy but would prefer to leave as is. Therefore I would need to pay the cash in. As there are limits on how much could be put in p.a., it may need a couple of years to get the funds in to buy something, say £100k. Is it possible to pay the maximum in this year and leave as cash and then max out again each year to build up the funds?

[PurpleMoonlight]

The current Annual Allowance is £40,000.

There is the facility to pay in addition any unused annual allowance from the three previous years.

If this is personal contributions you need taxable earned income in the tax year of payment equivalent or greater than the contribution to obtain tax relief on the lot.

Edited by PurpleMoonlight on Tuesday 16th June 16:40

[CaptainSlow]

OK thanks, re the last three years opportunity. I assume you take year individually to ensure you don't breach the gross earnings limit rather than being limited by gross earnings in the year of payment?

[PurpleMoonlight]

Nope, it's gross in the year of actual payment.

It's the unused allowance you can bring forward not the tax relief for that historical year.

[Tresco]

CaptainSlow said:

So, looking at purchasing commercial property and wrapping within a SIPP. I have a question on how I get the funds into the SIPP. I could transfer an existing policy but would prefer to leave as is. Therefore I would need to pay the cash in. As there are limits on how much could be put in p.a., it may need a couple of years to get the funds in to buy something, say £100k. Is it possible to pay the maximum in this year and leave as cash and then max out again each year to build up the funds?

Just done this on a similar lot size although had the SIPP up and running, process took nine months and fees were around 5%.