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Does the £40k annual pensions contributions limit apply to post-tax contributions ?

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    Does the £40k annual pensions contributions limit apply to post-tax contributions ?

    Leaving aside the reasons for doing it, can anyone tell me whether if I pay in money to a pension scheme from, eg an inheritance, where the sum was more than the normal annual £40k allowance I would be charged tax on it ? Is that even possible ?

    Also, can anyone give me the calculation workings for tax on contributions over the £40k limit ?

    (I'm aware of the 3 years backdating, btw, but would like to ignore that aspect for now.)

    Thanks,

    #2
    Your accountant can.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #3
      Originally posted by mangled View Post
      Leaving aside the reasons for doing it,
      because you know it's a stupid thing to do anyway?

      Originally posted by mangled View Post
      can anyone tell me whether if I pay in money to a pension scheme from, eg an inheritance, where the sum was more than the normal annual £40k allowance I would be charged tax on it ? Is that even possible ?
      You won't get taxed on anything put in over the limit (the limit being 100% of your salary or £40,000 (whichever is lower)). You just won't get tax relief. Pretty basic that. So just put the rest in an ISA.



      Originally posted by mangled View Post
      Also, can anyone give me the calculation workings for tax on contributions over the £40k limit ?
      yeah. No tax relief. 0%. Zip. Nada.



      Originally posted by mangled View Post
      (I'm aware of the 3 years backdating, btw, but would like to ignore that aspect for now.)
      Why are you ignoring all the important things (like "reasons", and "the limit")?
      Mind you with such a lack of the basics something so complex as that would be problematic.
      Get an IFA

      See You Next Tuesday

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