I expect to receive approximately £100k as redundancy payment in the next month or so. I am therefore in the process of deciding how to make the most appropriate fiscal arrangements, with no assistance on personal tax matters from my current employer. I have a few questions I hope you guys can help me with.
a) I intend to pay a lump sum to my corporate pension. Do you know if the tax-free pension allowance kicks in before or after the first 30k? In other words, assuming no contributions were made this year, if for example I put 40k in, will it mean 70k of the 100k will be effectively tax free?
b) I understand from here [https://www.gov.uk/tax-on-your-private- ... -allowance] that I can carry over the unutilised portion of the pension allowance for the past 3 years. In the past 3 tax years, I didn’t contribute my pension with the full tax-free allowance. As the figure was reduced from 50k to 40k in the 2014/15 tax year, shall I do the calculations upon (whatever I contributed, minus) the 50k for 2013/14 and 40k for 14/15 and 15/16, or 40k for all 3?
c) does the redundancy payment contribute to my overall income for HMRC to calculate the (now reducing) tax free pension allowance for 16/17?
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