Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sun, 03 Nov 2024 10:04:37 GMT by David Beattie
If my only income is from a small private pension via UFPLS (Total £12k = £3k tax free and £9k taxable) hence I pay not tax at all, how much am I permitted to put back into the pension each year and get tax relief/repaid within a recognised provider scheme that applies relief at source?
Posted Thu, 07 Nov 2024 13:23:54 GMT by HMRC Admin 34 Response
Hi,
You cannot pay the lump sum into another pension as this is pension recyclying and not allowed.
PTM133810 - Unauthorised payments
Thank you
Posted Thu, 07 Nov 2024 14:11:06 GMT by David Beattie
Thanks for the response. I understand the £3k PCLS cannot be returned to the pension. I note that this is below the £7.5k threshold mentioned in PTM133810. Does this mean that the £9k that is taxable, but is covered by the income tax allowance could be returned to the pension? Alternatively, could £2880 be returned to the pension, since this is what has been contributed in the past?
Posted Tue, 12 Nov 2024 15:23:52 GMT by HMRC Admin 19 Response
Hi,
You can see the following guidance and discuss returning the funds with your pension provider:
PTM131000 - Unauthorised payments: essential principles 
Thank you.

You must be signed in to post in this forum.