PTP's Tax Tip No 15 - Pensions ' Too good to be true?
Q - My client has found herself in the enviable position of being rather flush with cash, due to a large bonus which may be repeated next year. Her earnings are just over £500,000 all told and she would like to maximise her contributions into a new SIPP. Am I right in thinking that she can invest more than £215,000 and get tax relief?
A ' Yes she can. If her SIPP has a pension input period ending on (say) 30 June, then a contribution equal to the annual allowance of £215,000 gross (£167,700 net) can be made before 30 June 2006 for relief in 2006-07.