Pension contibution in year of retirement.

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?

Reply to
JimBob
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Subject to the upper limit on your fund, thats been my understanding. It'd be a good idea to speak to an IFA.

FoFP

Reply to
M Holmes

IIRC you can only get tax relief on 100% of your earnings in any tax year.

Reply to
Andy Pandy

On 30 Nov, 18:41, "Andy Pandy" wrote:

Many thanks for the prompt responses.

Reply to
JimBob

So what is the practical benefit of this relaxed limit in the year of retirement?

Reply to
Rob P

If you get a very big redundancy/payoff.

Reply to
Andy Pandy

very big being > 225,000

Glad there's a nice little exemption in there for that scenario.

Reply to
Rob P

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