Pension contributions allowance

Hi - with removal of lifetime allowance how much can I pay into pension to reduce tax if can afford it ? Understand all taxable income but does this include vesting RSU’s ? Also believe can pay in last three years missed but how is that done to ensure get tax back ? Rgds Declan

Hi,

HMRC are unable to provide financial planning advice. You may wish to speak to an independent financial adviser for further assistance.

However, you can see general information here:

Tax on your private pension contributions

With regards to the vesting of RSUs, as the payment is from your employer, the income should be shown in the employment section if it is included in your P60. You would then claim credit for the tax in the foreign section under 'Employment, self-employment and other income which you paid foreign tax on'.

If it is not included in your P60, please include it on the box on the employment page for 'Tips and other payments not included on your P60'.  

The following guidance advises that when RSUs payout at the market value on what is called "dividend equivalents" in either cash or shares, such payments will generally be taxed as earnings in the year they are received.  

ERSM20193 - Employment-related securities and options: what are securities: RSUs and dividend equivalents  

Please also see the guidance here:

Annual allowance
 
Thank you.