Pension contributions

I will reach my 75th birthday in the current tax year 2024/2025. I pay personal contributions into a SIPP but I realise I will only be eligible for tax relief on my contributions if paid before my birthday. My SIPP provider has indicated that the source of my contributions may only include relevant earnings made from employment. The rules seem to indicate that contributions the higher of "100% of your UK taxable earnings" or £3600 are allowed. In this tax year I will receive a small salary in addition to my State Pension, so I will have an income exceeding my total personal allowance, so will end up paying income tax. My SIPP provider has indicated that State Pension does not count towards my earnings, but my contributions may only include relevant earnings made from employment. In that case my employment earnings in the current tax year prior to my 75th birthday will not reach the tax free allowance threshold of £3600. Does the tax free allowance cease at my 75th birthday or is the income for the complete tax year taken into consideration? Is my SIPP provider correct in saying that contributions partly derived from a State Pension does not count towards allowable taxable earnings? I need clarification of these rules please.

Hi,

Your State Pension is taxable, but does not count towards the threshold for paying into your pension scheme to qualify for tax relief. The threshold is set at the lower of your employment income or £60000. Where there is no employment income, the threshold is limited to £3600. The following guidance advises "contributions can be paid after a member has reached the age of 75, they are not relievable pension contributions and cannot qualify for tax relief".

Contributions qualifying for tax relief

Thank you.