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  • RE: Tax relief on contribution to SIPP

    Thank you so much HMRC Admin 25 Final question - and apologies for coming back piecemeal like this 3) The SIPP provider I'm considering is Vanguard whom I understand normally arranges "relief at source". Do I separately need to inform HMRC via a self assessment? Thank you again for your kind assistance.
  • RE: Tax relief on contribution to SIPP

    Thank you very much HMRC Admin 25. Two follow-up questions if I may please. 1) My actual earnings this tax year, before any deduction of income tax, is £45k. So when you mention £54k, does that refer to me contributing £45k from my inheritance to the SIPP, and the SIPP provider getting 20% from HMRC ("relief at source")? Or can I actually contribute £54k and still get relief? 2) I am 55 years old at the moment. I intend to start withdrawing from my pension at 60. Am I right in thinking that since the money I will be putting into the SIPP is from an inheritance, I don't need to worry about pension lump sump recycling rules?
  • RE: Tax relief on contribution to SIPP

    Just to add to this - the income quoted is gross taxable income.
  • Tax relief on contribution to SIPP

    I have inherited money from my mother, and would like to put the money into a SIPP and claim tax relief. For tax year 2023-24, my employer has contributed £37k to my workplace pension. I have not contributed anything. So there is £23k un-used out of the £60k allowance. My income for the year is £45k. For tax year 2022-23, my employer contributed £31k, I contributed nothing. So there is £9k un-used out of the £40k allowance for that year. My income for the year was £45k. For tax year 2021-22, my employer contributed £27k. I contributed nothing. So there is £13k un-used. My income for the year was £45k. For tax year 2020-21, my employer contributed £12k. I contributed nothing. So there is £28k un-used. My income for the year was £60k. I am aware I can max claim relief up to 100% of my income. But it is not clear to me whether that is 100% of my income in the year I make the contribution (i.e., THIS tax year), or whether it is 100% of my income in each year that is covered by my contribution. In other words, if I contribute the full amount of 23k + 9k + 13k + 28k = 73k, can I claim tax relief on the full 73k? Or can I max claim relief on the 45k I am earning in the current tax year?