Guide to using pension contributions to mitigate LC19

[Bunnyfuture]

Pension

Does anyone know if non residents in excess of 5 years can still access the 130k pension as a possible means to mitigate the 2019 loan charge?

I do not think you can drill down into the pension until the age of 55 no matter how long you have been a non resident ?

[Albert49]

Pension contribution

Does anyone know if non residents in excess of 5 years can still access the 130k pension as a possible means to mitigate the 2019 loan charge?

If you mean can you contribute to a UK pension to offset the LC , even if you have been non resident for 5 years, then I believe the answer is yes, since the LC means that you have been deemed to have earned taxable income in the UK in the 2018-19 tax year equal to your outstanding loan amounts. As to whether you can carry forward pension contribution allowances for the previous 3 years, so that you can make a contribution in excess of 40k, then you do have to have had a pension already open in the previous 3 years in the UK that you could have contributed to . Suggest you will need to talk to a UK based pension professional.

[hmrcvictim]

Unfortunately, not an option for non-residents? Perhaps, I can go to MP of the constituency my property is in.

Depending on the size of loans, it is possible to make a big enough pension contribution to reduce LC tax to zero (see example 1 in the PDF guide). IE. HMRC don't collect any tax, never mind interest.

I don't know what their reaction would be to that.

However, if there was even a hint of vindictiveness, I'd be off to see my Member of Parliament. After all, you would have fully complied with the law (LC19) that Parliament had passed.

[dartondave45]

I have 3 dormant company pension schemes which I haven't paid into in donkeys years

I assume this needs a personal pension and that I would need to open one and deposit money in it prior to 5-Apr-2019?

And that the limit I could deposit is the total amount of all loans received plus 2018/19 income (calculated as salary plus dividend payments)

[CanPayButWouldRatherNot]

I have 3 dormant company pension schemes which I haven't paid into in donkeys years

I assume this needs a personal pension and that I would need to open one and deposit money in it prior to 5-Apr-2019?

And that the limit I could deposit is the total amount of all loans received plus 2018/19 income (calculated as salary plus dividend payments)

yes personal pension only and good to use unused previous years

[here4beer]

How does this work? I receive a 'file not found' error when i view the OPs pdf.

Does it apply to everyone settling?

[Albert49]

I have 3 dormant company pension schemes which I haven't paid into in donkeys years

I assume this needs a personal pension and that I would need to open one and deposit money in it prior to 5-Apr-2019?

And that the limit I could deposit is the total amount of all loans received plus 2018/19 income (calculated as salary plus dividend payments)

If you do not already have a personal pension open , then opening one now will only allow you to contribute £40,000 gross as this in the annual allowance and since you have not had a qualifying pension open for the past 3 years, you do not have any carry forward allowance. If you income (paye + Loan amounts) is greater than £150K (check link for exact figures) , then your allowance is reduced .

Llink : LC19 - Pension Contributions v3

[Iliketax]

Does it apply to everyone settling?

No. It's for the April 2019 loan charge where you have no open years. If you have an open year then you would want to talk to a professional adviser based on your own personal circumstances.

[stonehenge]

No. It's for the April 2019 loan charge where you have no open years. If you have an open year then you would want to talk to a professional adviser based on your own personal circumstances.

Why no open years?

[here4beer]

No. It's for the April 2019 loan charge where you have no open years. If you have an open year then you would want to talk to a professional adviser based on your own personal circumstances.

Thank you. So my (ashamedly) first year receiving loans was from April 2016, making my first SATR Jan 2019. This is a very much open yeah, and hence no chance to use this 'pension idea'...?