LTA Query
Posted: January 11th, 2017, 6:57 pm
Quick question for all of you wise people.
I am 36 years of age and have a pension pot of approximately 300k at present. I've achieved this by contributing fairly large amounts to my SIPP in recent years. I have approximately 50k remaining tax relief this year using the three year carry forward rule. I will be subject to the full taper in future years so my tax relief will be limited to 10k, which is fully covered by my employer's contribution. I max out my ISA each year and have started investing in some VCTs in the last two years.
Assuming a 6% growth rate I could almost be over the LTA of 1m at 55 with no further contributions. My question is as follows - is it worthwhile for me to contribute an additional 50k to my SIPP before the end of this tax year? It's incredibly difficult to plan for something so far into the future when the rules are changing twice a year at present!
Thanks
Mark
I am 36 years of age and have a pension pot of approximately 300k at present. I've achieved this by contributing fairly large amounts to my SIPP in recent years. I have approximately 50k remaining tax relief this year using the three year carry forward rule. I will be subject to the full taper in future years so my tax relief will be limited to 10k, which is fully covered by my employer's contribution. I max out my ISA each year and have started investing in some VCTs in the last two years.
Assuming a 6% growth rate I could almost be over the LTA of 1m at 55 with no further contributions. My question is as follows - is it worthwhile for me to contribute an additional 50k to my SIPP before the end of this tax year? It's incredibly difficult to plan for something so far into the future when the rules are changing twice a year at present!
Thanks
Mark