SIPP tax relief for tax resident on remittance basis

I'm filing tax on remittance basis. I'm retired. Can I still eligible to the 20% SIPP tax relief?

Hi,

This will depend on your level of income and the amount of pension you are contributiing. See further guidance here.

Tax on your private pension contributions

Thank you.

Thanks. Just to clarify more: that means whethere I'm filing on remittance or arising basis shall not affect my elibility of the 20% SIPP tax relief? As I'm retired, I am planning to contribute up to £2,880 ?

Hi,

You will need to ensure you have enough income to qualify for the relief. further guidance is at:

Remittance basis 2022 (HS264)

Thank you.

Thanks. As I understand, even if I have no employment income (just depends on saving for living expense), I can still contribute up to £2,880 in SIPP? And then I can be entitled to tax relief bringing the total to £3,600? Is my above understanding correct? The extra thing I'm unsure is whether filing remittance basis will affect my elibility. I didn't find that particularlily mentioned in HS264. Please kindly advise.

Hi,

You can still pay up to £2880, provided you are under 75. PTM044100 advises that "an individual can have tax relief in respect of any relievable pension contributions provided the individual is:- an active member of a registered pension scheme and a relevant UK individual, in the tax year in which the contribution is paid. Tax relief can only be claimed for the tax year that the contribution is actually made". 

It also states "where a member’s relevant UK earnings chargeable to tax are less than £3,600, tax relief on the amount of any contribution over the level of their earnings up to the £3,600 limit can only be given if the contribution is paid to a pension scheme that operates the relief at source (RAS) system.  

PTM044100 - Contributions: tax relief for members: conditions

Thank you.