Feb 19 18:39
3 mos ago
12 viewers *
angielski term
Pension Recycling
angielski > polski
Inne
Finanse (ogólne)
Pension Recycling in the UK
Pension recycling is commonly used to recycle all or some of a tax-free lump sum
Pension recycling is commonly used to recycle all or some of a tax-free lump sum
References
What are the pension recycling rules? | geopiet |
Reference comments
1 godz.
Reference:
What are the pension recycling rules?
HMRC is generally only concerned if they see an increase in excess of 30 per cent on expected contributions. Only then will they consider applying the extra tax charge.
Here are two examples, which show how you would be exempt, and how you could be liable.
Example 1: the right side of the rules
You take £5,000 tax-free from a pension and reinvest it in another pension plan.
As long as you had no other tax-free cash in the previous 12 months, you would not be caught by the recycling rule, as the cash did not exceed £7,500.
Example 2: the wrong side of the rule
You’ve been contributing £5,000 a year into a pension, and you then make a £100,000 contribution and subsequently take out pension benefits that include £100,000 in tax-free cash.
This was clearly pre-planned and exceeds the 30 per cent tax-free cash limit too, so is caught by the recycling rules.
- https://www.unbiased.co.uk/discover/pensions-retirement/mana...
Here are two examples, which show how you would be exempt, and how you could be liable.
Example 1: the right side of the rules
You take £5,000 tax-free from a pension and reinvest it in another pension plan.
As long as you had no other tax-free cash in the previous 12 months, you would not be caught by the recycling rule, as the cash did not exceed £7,500.
Example 2: the wrong side of the rule
You’ve been contributing £5,000 a year into a pension, and you then make a £100,000 contribution and subsequently take out pension benefits that include £100,000 in tax-free cash.
This was clearly pre-planned and exceeds the 30 per cent tax-free cash limit too, so is caught by the recycling rules.
- https://www.unbiased.co.uk/discover/pensions-retirement/mana...
Discussion