I have a DB pension that I will be claiming soon. I wish to take a PCLS sum of £20k. I have a separate SIPP and each tax year I contribute £3600,including tax relief,as I am not in employment.
I have already made a £3600 contribution to my SIPP for the current tax year. I now wish to pay in a further £10k to my SIPP. As I am not in employment no tax relief will be received by me in respect of the further payment.
HMRC states that the recycling rule is intended to prevent the generation of artificially high amounts of tax relief by using the PCLS to make a further,tax relieved, contribution to a registered pension scheme.
As I will not receive any tax relief on the £10k contribution to my SIPP does that mean that the contribution is not relevant when considering if pension recycling has taken place?
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