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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6630
Experience:  FCCA FCMA CGMA ACIS
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I am 55 years old and for the last couple of years have

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Hi, I am 55 years old and for the last couple of years have lived off savings, and had no income. During this time I paid £120 per month into a Stakeholder Pension and received tax relief on these payments. This tax year I have received £50k from an inheritance. I will pay income tax on this. Can I now pay up to £40k into my stakeholder pension and still receive tax relief? Thanks
JA: Which tax year is this for?
Customer: 2019/20
JA: Anything else you want the Accountant to know before I connect you?
Customer: No

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

You do not pay tax on inheritances, they come to you tax free any tax will have been paid by executors or administrators before distribution. As you have no income you cannot contribute to a pension scheme as these are limited to 100% of salary or 2880 quid. You can go back three years to mop up unused contribution levels.

Customer: replied 8 days ago.
Hi, thanks for the response. The inheritance I described is from my recently deceased mother's Alternatively Secured Pension fund and is not part of the estate. In this instance would this not be subject to income tax?

This is a fiendishly difficult area. Have a look here for a general explanation:

https://www.investmentsense.co.uk/technical-area/retirement/alternatively-secured-pension/

Your mother was exceeding ill advised to have anything to do with such a scheme.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.