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Posted Tue, 05 Nov 2024 10:50:22 GMT by srp
Does the annual allowance of up to £60,000 for making pension contributions apply if I am not earning above £12570? I realise I won't get tax relief above £2880, but I would like to contribute more than this and am checking any gain made in the pension fund won't be subject to tax (below £60,000)
Posted Fri, 08 Nov 2024 13:07:41 GMT by HMRC Admin 34 Response
Hi,
£60,000 is the maximum that you can pay into your pension scheme and receive tax relief, however you need to earn £60,000 or more. If you earn less than this sum then your maximum is your earnings for the year. If you have no earned income then the maximum is £2880 plus 20% = £3600. Any payments above the relevant threshold is subject to a pension savings tax charge, which must be declared in a self assessment tax return.
Thank you

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