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Posted Wed, 28 Aug 2024 14:13:04 GMT by mcjocko5 Donaldson
Hi, I am thinking of taking my DB Pension shortly with a 25% lump sum. I am going to put the DB lump sum into an ISA, to invest for the future. With my income from my DB pension, I am thinking of increasing my pension payments via my employer into my DC pension Pot. it is a salary sacrifice scheme and thus expect to get the 20% tax allowance and 17% NI allowance to do this. is there any reason why I could not do this as I am not using my lump sum. but just using my taxable pension income. Kind Regards Adam
Posted Wed, 04 Sep 2024 11:20:15 GMT by HMRC Admin 21 Response
Hi mcjocko5,
Your earned income will determine the pension threshold that will apply, from £3600 up to a maximum of £60000.  As your monthly pension payments will have been taxed, there would be no issue with using your taxed pension to pay into another pension scheme.
Thank you.
 

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