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    I am retired with a DB pension and OAP pension and pay some higher rate tax. Can I invest in a SIPP and get tax relief?

    06 December 2021

    Question by Louis

    I am retired with a DB pension and OAP pension and pay some higher rate tax. Can I invest in a SIPP and get tax relief?

    Answered by Boring Money

    Hi Louis,

    Yes, if you're under the age of 75 this is possible, but with consideration of the Money Purchase Annual Allowance (which should not be too much of an issue if you've never had a DC pension) and the lower of £40,000 annual allowance or your net relevant earnings.

    If this is not the case, then if you're purely after income tax relief and have a suitable capacity for loss, there are other options such as the much riskier Venture Capital Trusts (VCT's) or Enterprise Investment Schemes (EIS) as they invest in much newer companies.

    Best regards

    Answered by

    Boring Money

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    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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