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Company contributions to new SIPP

Company contributions to new SIPP

I have a small company client. One of two directors is considering starting a SIPP and wants to contribute from the company. He is on NI threshold salary. There is £100,000 accumulated profit in the company.

The question is, is there a limit to what the company can now contribute?

Thanks for any answers. 

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By MBK
10th Jan 2012 18:13

As long as you ensure it is set up ....

... correctly as a company contribution (as opposed to a personal contribution made with company funds) then your limits are the £50k per annum with brought forward of unused capacity (if available) for earlier years.

But the contribution needs to satisfy the "wholly and exclusively" test to get the CT deduction. Won't be a problem at these levels if the contribution is less than annual profit and the director is fully involved day to day in the business.

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Democratus
08th Feb 2012 15:32

Contribution

Belatedly, thanks

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