Tax relief on contribution to SIPP

I have inherited money from my mother, and would like to put the money into a SIPP and claim tax relief. For tax year 2023-24, my employer has contributed £37k to my workplace pension. I have not contributed anything. So there is £23k un-used out of the £60k allowance. My income for the year is £45k. For tax year 2022-23, my employer contributed £31k, I contributed nothing. So there is £9k un-used out of the £40k allowance for that year. My income for the year was £45k. For tax year 2021-22, my employer contributed £27k. I contributed nothing. So there is £13k un-used. My income for the year was £45k. For tax year 2020-21, my employer contributed £12k. I contributed nothing. So there is £28k un-used. My income for the year was £60k. I am aware I can max claim relief up to 100% of my income. But it is not clear to me whether that is 100% of my income in the year I make the contribution (i.e., THIS tax year), or whether it is 100% of my income in each year that is covered by my contribution. In other words, if I contribute the full amount of 23k + 9k + 13k + 28k = 73k, can I claim tax relief on the full 73k? Or can I max claim relief on the 45k I am earning in the current tax year?

Just to add to this - the income quoted is gross taxable income.

Hi SunnyUK,
Tax relief is limited to your actual earnings in the tax year the contribution is made.
The unused allowance is only in respect of a savings tax charge.
Based on your figures relief would be restricted to £54k.
Thank you. 

Thank you very much HMRC Admin 25. Two follow-up questions if I may please. 1) My actual earnings this tax year, before any deduction of income tax, is £45k. So when you mention £54k, does that refer to me contributing £45k from my inheritance to the SIPP, and the SIPP provider getting 20% from HMRC ("relief at source")? Or can I actually contribute £54k and still get relief? 2) I am 55 years old at the moment. I intend to start withdrawing from my pension at 60. Am I right in thinking that since the money I will be putting into the SIPP is from an inheritance, I don't need to worry about pension lump sump recycling rules?

Hi SunnyUK,
Sorry that was a mistype.
The relief would be restricted to £45k, this being your salary for 23/24.
You can still contribute more but no further tax relief would be given. you don't need to worry about the recycling rules.
Thank you. 

Thank you so much HMRC Admin 25 Final question - and apologies for coming back piecemeal like this 3) The SIPP provider I'm considering is Vanguard whom I understand normally arranges "relief at source". Do I separately need to inform HMRC via a self assessment? Thank you again for your kind assistance.

Hi,

No, you do not need to complete a Self Assessment tax return to claim any additional relief due here.

Thank you.