Recycling your pension

David Hill.LT32--009 PSB

David Hill.LT32--009 PSB

This summer, the Government published new rules on recycling income back into a pension scheme.

The income recycling regulations put a limit of £10,000 per annum on contributions that can be put back into a personal pension after flexible benefits have been drawn from a pension.

Paying money back into a pension will generate extra tax relief, provided that the contributions do not exceed earned income in the same tax year. The recycled contributions will also generate more tax-free cash and can also shelter the income that has been recycled from inheritance tax if an appropriate trust is used.

 

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