I understand that the annual limit to contributions of £225,000 does not apply in the year of retirement.
I have quite sizeable saving but only earn £20,000 pa and plan to retire next year. Does this mean I can put say £400,000 in to my pension fund next year and that I will get basic rate tax relef on the entire £400,000?
Subject to the upper limit on your fund, thats been my understanding. It'd be a good idea to speak to an IFA.
FoFP
IIRC you can only get tax relief on 100% of your earnings in any tax year.
On 30 Nov, 18:41, "Andy Pandy" wrote:
Many thanks for the prompt responses.
So what is the practical benefit of this relaxed limit in the year of retirement?
If you get a very big redundancy/payoff.
very big being > 225,000
Glad there's a nice little exemption in there for that scenario.
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