Pension Allowances and Tapering

[dmahon]

I wonder if I could ask the assembled a question about pension tax allowances and tapering as I do not have a FA yet.

Prior to 2015 I didn’t pay into a pension and earnt less than 150k. I did however have a pension open.

Post 2016 I earnt more than 150k and have been paying 80k into my pension through salary sacrifice to use the unused allowance from 3 years previous.

I recently learnt about the tapering of pension benefit for people who earn more than 150k, so I have unpaid tax on 240k

My question is, does the tapering apply on the full 80k, or not on the allowances which were credited against the years when I earnt less than 150k?

Edited by dmahon on Friday 26th July 07:13

[dmahon]

I wonder if the concept of Threshold Income helps me out here as described in the case of Ella.

https://www.retirement-planner.co.uk/122074/carry-...

Because there are no employer contributions and I am salary sacrificing such a high amount, my threshold income is the below the point at which I start losing allowance?

Dangerous game this pension stuff!

[JulianPH]

Put a post on the Intelligent Money sticky at the top and Nik will be able to give you a technical answer.