bookieb

Hi team, Am I able to get a response as your guidance as per the referenced links are ambiguous? Otherwise, is there a number/option I can call for further clarification? Thanks

Hi! I have what I hope is a simple query which your guide - https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm133810 - doesn't exactly deal with. My scenario is fairly straightforward in that I have a defined contribution pension pot of around 700k. For the past 7 years, through my employer and my contributions, I have maximised at the annual allowance of 40k. In the last financial year, the allowance rose to 60k (my salary is around 100k) and I raised my contributions to that and will do the same until 59 when I retire. However, I plan to buy a house (currently renting) this year and intended to withdraw a 25% tax free lump sum to put towards the mortgage. My question is whether I would breach the pension recycling rules. I don't believe I would as my contribution behaviour shows I've maximised payments every year for at least 7 years to the annual allowance as part of retirement planning. Looking at your article, it talks about 2 key areas: a) "the cumulative amount of the additional contributions exceeds 30% of the pension commencement lump sum." >>this is not hit as my contributions have and always will be the annual allowance limit until 59 b) "because of the lump sum, the amount of contributions paid into a registered pension scheme in respect of the individual is significantly greater than it otherwise would be." >>this is not applicable since my contributions in the last 7 years have been the annual allowance limit of 40k (60k from 2023-24). In summary, I'm sure I'm not hitting any obvious recycling rule. Can this please be confirmed or a further example placed in your article, dealing with my scenario? Thanks, J.