Client worked for HBOS for several years earning circa £90k pa (with BIK's and other income etc, total income circa £100k).
Client now taken retirement/severance payment of £30k tax free payment, plus an option to have the remaining severance (of £120k) paid directly into his pension pot. I have already found that the £30k payment is not taken into account for calculating 'relevant income' but I can't find anything on the remaining severance. Should this be treated as a 'salary sacrifice arrangement'?
My question is therefore will the SAA rules apply to him due to the £120K payment? If so, is this deemed to be a personal pension cont and therefore do we also need to extend the clients' BRB by the pension contribution or will this not apply?
I would have thought that this is a common thing for HBOS and so hopefully someone else will have come across this before?
Thanks
