Pension

[THEPUMA]

If people are taking advice on what they can contribute and how they can contribute then there's no need to add "probably". The rules for "relevant" contribs are quite clear.

I'm not quite sure what the point is that you are trying to make. I am simply saying that a company will not necessarily get corporation tax relief if it makes a pension contribution of £225K.

Carry back of contributions is no longer allowed so this scenario couldn't happen.

I was talking about carrying back the loss for corporation tax purposes.

[glashIFA@Paramount]

[QUOTE=THEPUMA;290615]I'm not quite sure what the point is that you are trying to make. I am simply saying that a company will not necessarily get corporation tax relief if it makes a pension contribution of £225K.



Not trying to make any point - all i said was that £225K was the maximum annual allowance for tax relief - which it is.

[someone has my name]

thanks for all the advice...
I have decided to keep my stake holder personal, and not
contribute from my company.

[achillea]

best option for higher rate tax payer

I think I will go into the higher tax band in this financial year.

It looks like it will then be more beneficial to make a personal pension contribution into my SIPP rather than through the company (ie 40% versus 20% corp tax relief).

So should I make 100% of the contribution personally?

thanks

[minstrel]

I think I will go into the higher tax band in this financial year.

It looks like it will then be more beneficial to make a personal pension contribution into my SIPP rather than through the company (ie 40% versus 20% corp tax relief).

So should I make 100% of the contribution personally?

thanks

Yes - you are slightly better off making the contribution personally. This applies even if you don't go into the higher rate tax band.

[Kess]

Next tax year CT will be 21% and basic rate tax will only be 20%, so then it would be better to make the contribution via the company.

Anyone know if this is still the situation, or has Gordon and Alistair's recent tax announcements introduced any complications, moved the goalposts or muddied the waters?

[minstrel]

Anyone know if this is still the situation, or has Gordon and Alistair's recent tax announcements introduced any complications, moved the goalposts or muddied the waters?

As far as I'm aware the recent tax announcements haven't changed the situation.

Theoretically most efficent to make contributions personally this year and then via the company next tax year.

If you are setting it up now it's hardly worth the hassle of switching so probably easiest to just make company contributions.