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Posted Mon, 13 May 2024 15:42:17 GMT by Bryan S
Hi, I'm doing some financial planning and looking to not renew my buy to let mortgage when it comes off of a 5 year fixed rate (as many I guess are doing given the vast difference in interest rates to what was teh case 5 years ago). One of the ways of doing that is to take my defined benefit pension a little early, and associated with that is entitlement to a Lump Sum. That said, if I do use that to help pay off my mortgage, and I do find, later in the year that I have more money because of the rental income and the fact I'll no longer have a fairly large mortgage payments to meet, as I'm approaching my retirement I was thinking to increase my pension contributions - which may well amount to over 30% of the lump sum (especially over a few years). Could such a situation where the other conditions for recyling have been met technically, result in HMRC deeming I've planned this, and so would fall foul of the recyling rules?
Posted Thu, 16 May 2024 12:31:28 GMT by HMRC Admin 20 Response
Hi Bryan S,
Yes because you have already though about doing this so already planned.
Thank you.

 

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