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Posted Thu, 24 Oct 2024 09:57:32 GMT by FactSeeker64 Williams
Say I am 60 and have a personal pension pot of £110,000 and have had no salary nor pension contributions for the last 4 years. I then make use of my personal pension allowance for this year 2024/25 and the previous three tax years, and pay in four times £2,880, and get tax relief on that. If I then take a 25% Tax Free Lump Sum of say £31,100, will I then still be able to pay annual contributions of £2,880 and get tax relief on those in the years from 2025/26?
Posted Wed, 30 Oct 2024 18:26:26 GMT by HMRC Admin 20 Response
Hi,
You cannot use previous years to get tax relief on your contributions.
The unused relief is only carried forward in the event you exceed your annual allowance which is currently 60k each year.
As no income you will only be able to contribute £2880 to then get tax relief.
A pension does not count as earnigs to get tax relief on your contributions.
Thank you.
Posted Thu, 31 Oct 2024 08:07:19 GMT by FactSeeker64 Williams
Thank you for that clarification

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