New Tax Year: SIPP & ISA Contributions
For those clients with a US UK nexus, any planning undertaken from 6th April 2021 through to the end of 2021 will be done in the same US UK tax year, avoiding a potentially complicated mismatch. With this in mind, we thought a brief Spring clean of some financial planning thoughts might be valuable for our readers. Therefore, we have provided a series of three blogs on three different tax considerations that we hope you will find useful. The first, detailed below, is on SIPP & ISA Contributions.
As we begin the new UK tax year 2021/2022, please find below a reminder of your annual allowances:
• ISA - £20,000
• Junior ISA - £9,000
• Pension - £40,000*
• Child Pension - £3,600
[Note: you have until 5 April 2022 to complete the 2021/22 ISA and/or pension contribution]
If you have made personal contributions, or have had contributions made on your behalf (e.g. by an employer) to another pension pot, this will reduce the amount you can contribute to your MASECO SIPP.
If you have any form of Fixed, Enhanced or Primary Protection, you should not contribute to a pension as this will break the protection.
If you are earning in excess of £240,000 p.a. your annual pension allowance will be reduced.
Please contact your Wealth Manager if you have any questions regarding the above points.
If you would like to make contributions to your pension or ISA please contact your Wealth Manager for your wiring instructions.
Note: We understand that these considerations may not be relevant for all individuals. Should you have any questions then please contact your MASECO wealth manager to discuss these thoughts in greater detail, to ensure any action taken is suitable for each unique client situation.