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Where Taxpayers and Advisers Meet

Tax brain required

CuriousAboutTax
Posts:7
Joined:Thu Jan 23, 2014 12:37 pm
Tax brain required

Postby CuriousAboutTax » Mon Apr 02, 2018 1:12 pm

Hi all,

I’m trying to decide if it would be prudent to put some more money into my existing pension from my previous employment. There are two reasons behind this, 1. My pension pot has been performing reasonably well 2. I wondered if this may bring down my overall “taxable income” to reduce my tax payments on rental income

My SOLE income now is from rental properties, in this case, would my pension contributions be tax deductible against my rental income at all?

thank you

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Tax brain required

Postby AdamS93 » Mon Apr 02, 2018 2:32 pm

No, pension contributions will not be delectable from your rental profits unfortunately.

As you have no employment/self-employment income, you can contribute up to £2,880 (net) in to a private pension. This will increase your basic rate band meaning you will pay less tax at the higher rates as well as the government adding 25% to your net contribution.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Tax brain required

Postby robbob » Wed Apr 04, 2018 1:22 pm

AdamS93
will not be delectable
By any chance were you eating your nice mid afternoon slice of cake when you posted that ? :)


Op ref rental income - i would agree with Adam unless the rental income is classed as a trade (I.e sole trader) - this is unlikely to be the case though - however if this was the case you may be able to put up to 100% of the profit into a pension if you so choose.


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