For this tax year I would like to maximise my pension contribution, ideally contributing the maximum allowance of £40k. However I only expect to have a trading profit from contracting in my ltd company of approximately £20k due to not working for the whole year.
However, I also have a large capital gain in my company of > £40k due to selling shares in the company sharedealing account.
I do not have any previous years unused pension contributions which I can use up.
Is it possible to make a company contribution to my pension of £40k, and get tax relief on the full £40k, i.e. can I get tax relief on the corporation tax due on the sharedealing capital gain in addition to my normal contracting income?
I thought that this was not possible, however I have asked my accountant who says I can get tax relief on the capital gain. He quotes Section 37 of the Corporation Tax Act (CTA) 2010.
Corporation Tax Act 2010
But I'm puzzled when I read the section because it starts off by talking about trade losses. I don't see how that relates to my pension and capital gains query.
37 Relief for trade losses against total profits
(1)This section applies if, in an accounting period, a company carrying on a trade makes a loss in the trade.
Is my accountant right? How much pension tax relief can I get?
I am querying this with my accountant.
However, I also have a large capital gain in my company of > £40k due to selling shares in the company sharedealing account.
I do not have any previous years unused pension contributions which I can use up.
Is it possible to make a company contribution to my pension of £40k, and get tax relief on the full £40k, i.e. can I get tax relief on the corporation tax due on the sharedealing capital gain in addition to my normal contracting income?
I thought that this was not possible, however I have asked my accountant who says I can get tax relief on the capital gain. He quotes Section 37 of the Corporation Tax Act (CTA) 2010.
Corporation Tax Act 2010
But I'm puzzled when I read the section because it starts off by talking about trade losses. I don't see how that relates to my pension and capital gains query.
37 Relief for trade losses against total profits
(1)This section applies if, in an accounting period, a company carrying on a trade makes a loss in the trade.
Is my accountant right? How much pension tax relief can I get?
I am querying this with my accountant.
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