More than 25 providers have had tax relief effectively switched off on SIPP contributions paid where a transfer of assets had been used to settle in lieu of cash for the 2015/16 tax year. Keeley Paddon takes a closer look
There is no HMRC rule that payments made into a pension must be in pounds sterling - property is also acceptable. This means scheme members are able to transfer property into a self-invested personal pensions (SIPP) or small self-administered scheme (SSAS) and obtain tax relief on its value up to 100% of earnings in the tax year in which the transfer is made. Employers are also able to transfer an asset to a scheme in lieu of a contribution and claim tax relief in the normal way. This is, however, subject to the annual allowance - £40,000 for 2016/17 (plus the potential three years of...
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