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.
However, once you've flexibly accessed your pension, which includes taking an UFPLS payment, you’ll have trigged the Money Purchase Annual Allowance (MPAA). This means your allowance will be reduced to £4,000 each tax year for contributions to money purchase pension 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 9926 if you would like to discuss how this works in more detail.