Richard Gardner

Thank you. So, I will be depositing the lump sum into a savings account for about a year until the very low interest fixed rate term on my mortgage comes to an end and then using it, and a small inheritance to pay off my mortgage. Given all guidance published discusses recycling of a lump sum, can I assume that increasing contributions into my workplace pension, taken from gross salary, while the lump sum is earmarked for paying off my mortgage, is not considered recycling.

Hello, I am about to receive a modest pension from previous employment. It comprises a £35k tax free lump sum and a £12k per annum taxable payment. I intend to pay the £35k into savings and use the £12k taxable as additional income. Am I allowed to increase my existing pension contributions paid to my current employers scheme from gross salary without falling foul of pension recycling rules, or would such increase be viewed as using part of the £12k taxable as a recycled contributions? Thanks for any clarification you can offer.