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Where Taxpayers and Advisers Meet

If SIPP reaches lifetime allowance by investment performance

david66
Posts:16
Joined:Fri Jan 22, 2021 7:03 pm
If SIPP reaches lifetime allowance by investment performance

Postby david66 » Mon Feb 19, 2024 2:09 pm

Suppose I am an incredible investing whizz and 60 years old. I have ceased contributing to a SIPP which has £400K in it. Then the following year I make a 50% return on the money in the SIPP by canny stock market trading. What are the tax implcations for the investment returns? How are they treated?

Also if I keep doing this (I know unrealistic :D ) what happens when I exceed the lifetime allowance?

Many thanks in advance.

AGoodman
Posts:1743
Joined:Fri May 16, 2014 3:47 pm

Re: If SIPP reaches lifetime allowance by investment performance

Postby AGoodman » Mon Feb 19, 2024 8:05 pm

As matters stand, the lifetime allowance is being removed form 6 April (absent the collapse of the Govt between now and the Finance Bill being passed). The cap on tax free lump sums will remain.


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