Skip to main content

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

Posted Sat, 03 Feb 2024 06:15:50 GMT by
Dear Sirs I manage a property business in the UK. I have some investment income but no other employment income. My profit from the property business for 2023-24 is expected to be about 10,000 GBP. I understand that rental income is not considered earned income for SIPP. However, "income from a trade, profession or vocation that is chargeable under Part 2 Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005)(applies if the activity is conducted individually or as a partner acting personally in a partnership)" is considered earned income. My questions are: 1. Would my profit from the property business be considered as earned income? 2. What is my SIPP contribution limit for the year 2023-24? Thank you. Kazi
Posted Wed, 07 Feb 2024 09:41:12 GMT by HMRC Admin 25 Response
Hi yodamochi Rahman,
It would only be considered a business if you were registered as self femployed to then pay Class 2 and Class 4 National Insurance.
This is unlikley to have been the case as you will be a non resident landlord and taying tax only.
For pensoin relief please refer to:
Tax on your private pension contributions
Thank you.
 

You must be signed in to post in this forum.