Dear Accountingweb members,
I’m maxing out my SIPP/pension contributions for this tax year to make use of my annual allowance from previous years.
I believe that in order to make use of the previous 3 years allowance, I must earn at least the amount I wish to contribute in total this tax year.
I want to put £100k into a SIPP but my salary is £62k. In May last year, the company I work for was sold and I was given £60k from share options that were exercised.
My question is, were my earnings for this tax year £142k (£62 salary + £60k exercised share options)? Therefore I can contribute £100k for this tax year to my SIPP to make use of previous allowances and claim tax relief?
Any advice most appreciated.