Pension contributions can be used to relieve LC19

[InNZ]

I have a UK pension and can make contributions from a UK bank account if that makes a difference?

I was told by Standard Life that I could only contribute into my UK pension for only the first 5 years after moving abroad. You might be cutting it close if you left in 2014.

[Loan Ranger]

LC19 creates a very unusual situation. Even though you may be non-resident in 2018/19, you are deemed as earning a shed load of UK taxable income.

I think being in receipt of LC19 would make someone a "relevant UK individual" for tax relief on pension contributions. See first bullet point.

How does an individual meet the 'relevant UK individual' requirement for tax relievable pension contributions?

As an aside, this could all get very messy if the tax authority, where you reside, also regards LC19 as taxable income.

PS. even some pension advisors may have a hard time getting their head around this

[phil@pmtc]

LC19 creates a very unusual situation. Even though you may be non-resident in 2018/19, you are deemed as earning a shed load of UK taxable income.

I think being in receipt of LC19 would make someone a "relevant UK individual" for tax relief on pension contributions. See first bullet point.

How does an individual meet the 'relevant UK individual' requirement for tax relievable pension contributions?

As an aside, this could all get very messy if the tax authority, where you reside, also regards LC19 as taxable income.

PS. even some pension advisors may have a hard time getting their head around this

Interesting, also I agree, HMRC have Already said that LC will be classed as relevant earnings for pension relief purposes and therefore that first bullet point strongly indicates having such earnings is all you need to be eligible for the relief.
It also tells me that I clearly don’t understand the rules of pensions well enough.

[Loan Ranger]

Interesting, also I agree, HMRC have Already said that LC will be classed as relevant earnings for pension relief purposes and therefore that first bullet point strongly indicates having such earnings is all you need to be eligible for the relief.
It also tells me that I clearly don’t understand the rules of pensions well enough.

Assuming it is correct, the next question is:

Can a person, who is non-resident, carry forward the previous 3 years unused allowance?

For people with big loans, it's only the ability to carry forward which provides significant tax relief.

[starstruck]

Does that mean that everyone, UK resident or non-UK resident, will be given the same annual current maximum pension contribution of £30,000 in 2018/2019?

Or will everyone, UK resident or non-UK resident be allowed to carry forward any unused allowances from the 3 previous years totaling £120,000 in 2018/2019?

It’s 40k and 160k.

[Delendog]

It’s 40k and 160k.

I very much doubt that a non res will be able to get any unused allowances from previous years if they were non resident. Also remember the 40K in 2018/19 could be reduced to 10k if your loan values are high.

[EBTContractor]

I very much doubt that a non res will be able to get any unused allowances from previous years if they were non resident. Also remember the 40K in 2018/19 could be reduced to 10k if your loan values are high.

Do you know from which loan/income amount it the pension allowance starts to taper?

[Fred Bloggs]

I very much doubt that a non res will be able to get any unused allowances from previous years if they were non resident. Also remember the 40K in 2018/19 could be reduced to 10k if your loan values are high.

You would need to check it out properly, but I believe you can do this until you have been non resident for five years.

[Loan Ranger]

Do you know from which loan/income amount it the pension allowance starts to taper?

It starts to taper when

Total income - pension contributions > £110,000

If the above condition is met then the allowance is reduced by

(Total income - £150,000) / 2

The reduction is capped at £30,000

[starstruck]

I very much doubt that a non res will be able to get any unused allowances from previous years if they were non resident. Also remember the 40K in 2018/19 could be reduced to 10k if your loan values are high.

To clarify - was just correcting the figures for UK residents.