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  • Redundancy payment into a SIPP

    Hi all I've done some research on this forum and elsewhere but I still don't think I've arrived at an answer. I will be made redundant on 27/3/25. My redundancy settlement will include a sizeable portion above £30K that will be taxable at high rate but no PILON complication. My employer will not pay it into a SIPP as salary sacrifice. I wish to pay all of this taxable element into a SIPP, or at least the maximum I can that will avoid tax until I withdraw from the SIPP. I believe there are two limits to what I can pay into a SIPP: 1: Annual allowance. I believe I can utilise any unused allowance for the last three tax years and the tax year to come (2025/26). I have enough AA if this is correct to cover all of the taxable redundancy pay 2: Maximum earnings in year 2024/25. I believe you can't pay more into a SIPP than your earnings for the year, excluding redundancy. If this is the case my earnings would not be more than the taxable element of redundancy therefore the residue would still be taxable Can anyone confirm that either or both of those statements is correct? Best regards