Trustee Investment Plan

At Lansdown Place we also offer advice to pension scheme trustees and investors who hold a SIPP which may invest in a wider investment choice. There are specific investments suitable for these types of pension investor which are known as Trustee Investment Plans. These investments range in the underlying asset in which they may invest, and are always recommended as part of a risk profiled recommendation.

As mentioned above our pension advice follows the same pattern as out investment advice to ensure that any recommendations made suit the risk profile and investment objectives of our pension investors.

How much can I contribute to a pension?

If you’re a UK resident the general rule is that you can contribute as much as you earn to pensions in any one tax year. There is an overall cap known as the annual allowance which has been set at a limit of £50,000. This figure applies to your own payments (including those made by your employer and the value of benefits built up in final salary pensions).

There are some occasions when a contribution in excess of £50,000 may be permissible, one of our advisors will be happy to assist you in determining this relevant to your individual circumstances.

If you have no earnings (maybe you’re retired, a child or not working), you can still contribute up to £3,600 gross (£2,880 net) this tax year. Even though you may not pay tax, your contribution is still eligible for tax relief.

Input periods

A pension scheme can choose the 12 month period (the pension input period) over which contributions are measured against the annual allowance. It doesn’t need to coincide with the tax year, nor with the calendar year. So, for instance, if you contributed £50,000 into a pension in the last tax year, if the input period of that pension plan ends in this tax year, your contribution would actually be measured against this tax year’s annual allowance. It is important to check this level of detail when considering how much to put into a pension each tax year.

Carry forward

It may be possible to contribute up to £200,000 into a pension and receive full tax relief?

If you have unused Annual Allowance from the past three tax years, you may be able to use it this year, increasing your £50,000 allowance.

Your allowance for each year is deemed to be £50,000. If you have not contributed to a pension in the last 3 tax years you could be permitted to carry forward £50,000 for each of these tax years increasing your overall limit to £200,000. Any contributions that you have made would be deducted from this overall limit to give your individual carry forward allowance.