SIPP Contributions for 21016/17
Posted: Thu Nov 17, 2016 1:58 pm
I retired earlier this year, but as I’m still in my mid 50’s haven’t yet taken my Final Salary company pension.
My only earnings this tax year is £500 but I do have quite a few ordinary UK shares, in FTSE companies, which pay a reasonable dividend of £15,000 per year.
I understand that the first £5,000 of dividend income is tax free and the remaining £10,000 can be set against my personal allowance, making £10,500 of income for 2016/17
Am I allowed to use the full £10,500 as a SIPP contribution for the tax year?
My only earnings this tax year is £500 but I do have quite a few ordinary UK shares, in FTSE companies, which pay a reasonable dividend of £15,000 per year.
I understand that the first £5,000 of dividend income is tax free and the remaining £10,000 can be set against my personal allowance, making £10,500 of income for 2016/17
Am I allowed to use the full £10,500 as a SIPP contribution for the tax year?