‘Super earners' who rank in the top 1% of earners in the UK can more than double their maximum SIPP annual allowance for this tax year, says Fidelity FundsNetwork.
Savers can invest up to £460,000 by using input periods to put next tax year’s maximum investment into their SIPP with this year’s.
Input periods usually cover one year, beginning on the date the investor makes an initial payment into their SIPP and ending 12 months later.
However, investors can end the input period early if they reach the maximum annual allowance (AA) for that input period within that time.
If this is the case, and the end date falls before the end of the tax year in which the investor made the initial payment, a new input period can begin. The investor can then make another payment within the current tax year, using the AA from the new input period. The investor also remains eligible for tax relief on the contributions.
Rob Fisher, head of sales and marketing at Fidelity FundsNetwork, says: “The concession of investing by input periods instead of by tax year provides an additional layer of flexibility and is something that those who fall into the ‘super earner category’, in the top 1% of earners in the UK, may do well to consider.”
To comment on this story contact:
Tel: 020 7034 2679
E-mail: [email protected]
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till