Investment and interest income for SIPP

Hi there, My wife doesn't work. If she had £5,000 income from bank interest and £5,000 investment income (from bonds and dividends) could she put £10,000 into a SIPP? Do the investments need to be out with an ISA? Thanks

Hi,
The tax free threshold for pension relief is based on the individuals earned income in the tax year.  
As you wife has no earned income her threshold is £3600.  
She can pay in £2880 and the pension provider can claim £720 from HMRC (£2880+£720 = £3600).  Your wife can pay in more than £3600 if she wants, as there is no limit to the amount you can pay in.  There is only a limit on how much tax relief can be claimed.  
Any amount above this threshold is chargeable to tax and must be declared in a self-assessment tax return as a pension savings tax charge. 
Please see: Pension schemes rates
Thank you