HMRC has issued guidance on its pension rules following a taxpayer's enquiry about contributions into their SIPP (Self-invested personal pension). The person, who had recently been made redundant, asked for guidance on moving shares from an employee share incentive plan (SIP) into a self-invested pension plan (SIPP). Their question 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 was unequivocal: "Any input into a pension would count towards your annual limit." The limit for pension contributions stands at £60,000 for this tax year.

This annual allowance threshold has been fixed at this level since the 2023/2024 tax year, after it moved up from the previous £40,000 cap. The taxpayer presse

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