SIPP annual contribution limit when taking occ pension.

[rfisher]

Probably totally wrong, but am I correct in thinking that you can only contribute £10,000 per year to a SIPP if you are already drawing your occupational pension?

Would this limit also apply when transferring a commercial property into the SIPP?

Presumably the £10,000 annual limit also rolls over for the previous 3 years as well?

[PurpleMoonlight]

Are you accessing flexi-access pension under the occupational pension scheme?

[rfisher]

I would be retired and taking my full occupational pension.

[PurpleMoonlight]

Is this a defined benefit pension?

[33q]

I'm retired and benefit from a DB occupational pension

I pay into a SIPP and I'm limited to £3600 per annum ....net £2880, plus £720 - contribruted by HMG

I don't pay NI. If I paid NI I could pay more according to my Financial Advisor....no point in me exploring that further

[PurpleMoonlight]

33q said:

I'm retired and benefit from a DB occupational pension

I pay into a SIPP and I'm limited to £3600 per annum ....net £2880, plus £720 - contribruted by HMG

I don't pay NI. If I paid NI I could pay more according to my Financial Advisor....no point in me exploring that further

Thats because you have little or no earned income. Its called the de minimis amount.

Edited by PurpleMoonlight on Saturday 25th November 16:44

[rfisher]

Yes it's a DB scheme.

[PurpleMoonlight]

rfisher said:

Yes it's a DB scheme.

Okay ta.

I believe the money purchase annual allowance of £4000 pa (not £10000 pa) only applies where pension is flexibly accessed, so it won't apply to you.

You can pay up to £40000 pa plus carry forward unused annual allowance from the previous three years. But you need the taxable earned income to justify tax relief.

Are you looking to put the property in as an in specie contribution?

[anonymous-user]

Recycling?????

[rfisher]

Yes specie of the % that I own.

Recycling is an issue if I use some of the tax free lump to put in my SIPP I think?

No sure how that works - is there a time delay required between taking the lump sum and putting money into the SIPP?

[PurpleMoonlight]

Do you have taxable earned income equivalent to the value of your share of the property?

Is that income over £150000?

SIPP providers are currently wary of in specie contributions.

Some SIPP providers won't permit part ownership.

[rfisher]

1st question yes.

2nd question no.

[anonymous-user]

PurpleMoonlight has not commented on the recycling point. Beware. If any tax free cash lump sum you received from your occupational pension scheme (or other pension) is being used directly or indirectly to fund your increased SIPP contributions you run the risk of getting into significant difficulties with HMRC. You would do well to consider taking paid professional advice on this area. You mentioned transferring a property and the question may arise why you have decided/can afford to do that at this stage.

Put at the simplest, you may risk a hefty tax charge if you send tax free money back round the pension system with a view to obtaining even more tax relief.
https://www.zurichintermediary.co.uk/_/media/dbe/u...

[rfisher]

Do the rules for recycling also apply to the use of money from the sale of property (residential or btl), isas or an inheritance?