HMRC clarifies pensions allowances after £30,000 confusion

HMRC clarifies pensions allowances after £30,000 confusion View Image

HMRC has provided clarity on its pensions allowances following a specific enquiry from a taxpayer regarding contributions to their SIPP (Self-invested personal pension). The customer, who had recently been made redundant, asked for guidance on transferring shares from an employee share incentive plan (SIP) into a self-invested pension plan (SIPP).

Their query was: "Does the transfer of £30,000 shares from a SIP to a SIPP following redundancy count towards my annual earnings limit?" HMRC's initial response confirmed: "Any input into a pension would count towards your annual limit."

Currently, the maximum amount you can pay into your pension for this tax year stands at £60,000. This annual allowance has remained at th