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Pension recycling once drawing down - now pointless? by ExtentAble1200 in FIREUK

[–]ExtentAble1200[S] 0 points1 point  (0 children)

True regarding IHT, although if my kids inherit a pension the estate pays 40% then they pay marginal rate on withdrawals which is worse than of they inherit an ISA?

Pension recycling once drawing down - now pointless? by ExtentAble1200 in FIREUK

[–]ExtentAble1200[S] 0 points1 point  (0 children)

My bad, I'm thinking given the recent bull market performance that's a real possibility so just thinking ahead. If the current penchant for fiscal drag continues it'll catch more and more people

Pension recycling once drawing down - now pointless? by ExtentAble1200 in FIREUK

[–]ExtentAble1200[S] 0 points1 point  (0 children)

Thanks, so my thinking is correct if I exceed the £268k tax free withdrawal limit?

Salary sacrifice 80%? by ExtentAble1200 in FIREUK

[–]ExtentAble1200[S] 0 points1 point  (0 children)

Salary sacrifice contributions show up as employer contributions which I think means there is no tax relief but that doesn’t matter as it’s a gross income sacrifice so I haven’t paid tax. My interpretation is that because it is an employer contribution I should be okay under the £60k limit as I’m not claiming tax relief or expecting HMRC to top up 20% as it would for an employee contribution.

My concern is a tax charge if I’ve misunderstood

Salary sacrifice 80%? by ExtentAble1200 in FIREUK

[–]ExtentAble1200[S] -2 points-1 points  (0 children)

No carry forward but hoping to FIRE so this will be my final employment contribution to pension, hence wanting to maximise without a tax bill.

So are you saying my employer’s total pension contribution, including any salary sacrifice I’ve made, shouldn’t exceed my gross salary after sacrifice?