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Where Taxpayers and Advisers Meet

Pension contribution without earned income

Paul Harris
Posts:3
Joined:Tue Oct 20, 2015 3:51 pm
Pension contribution without earned income

Postby Paul Harris » Wed Jul 27, 2016 2:49 pm

Would greatly appreciate confirmation whether I have this correct (I have searched HMRC/FAQs/Posts but am still unsure…)

In the last 4 years I have received no earned income, but I have received rental, interest and dividend incomes.

I understand I can contribute £3,600 gross to my SIPP account each year (I have not done so).

Am I right, I can I carry forward the last 3 year’s allowances (3 x £3,600) and add the one for the current year (£3,600) and thereby contribute £14,400 gross today? (£11,520 net of 20%)

Thank you…

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: Pension contribution without earned income

Postby RMC » Wed Jul 27, 2016 6:49 pm

Afak you can contribute to a pension scheme as much as you like, but without earned income tax relief is only on £3600 (net).

JOHNRE
Posts:91
Joined:Sat Feb 06, 2016 2:03 pm

Re: Pension contribution without earned income

Postby JOHNRE » Sat Feb 25, 2017 11:59 am

Hargreaves Lansdown recently informed my wife that she was unable to access the Carry Forward rule because, as a non earner like you, she will not have contributed the maximum £40K in the current year. Very frustrating,


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