Can I make additional contributions to my HL SIPP after the UFPLS has been taken?
Yes, you can make further pension contributions and will receive tax relief on personal contributions provided you are within your contribution limits, are UK resident and under age 75. The current standard annual allowance of £40,000 will apply.
Within the standard allowance there is a money purchase annual allowance (MPAA) of £4,000 for the 2018/19 tax year, which will be triggered once the first UFPLS payment has been made or once you flexibly access pensions in another way (for instance taking income from flexible drawdown or an UFPLS from pensions held elsewhere). The MPAA will apply to all contributions to money purchase schemes, such as the HL SIPP.
Contributions above the annual allowance, or the MPAA, will be taxed as income. Tax rules can change and tax liability depends on your circumstances.
Please call us on 0117 980 9940 if you would like to discuss how this works in more detail.