Tax relief on SIPP

[dawny10]

Hi all, wonder if anyone knows the answer as can't find it written down anywhere. I've 2 months ago opened a SIPP with Vanguard (my workplace pension is defined benefit but tied to state retirement age so wanted something I could potentially use to retire earlier) and am paying a monthly contribution. It shows the 25% tax relief but it seems to be pending as cash. Does anyone know when will this go in, is it at the end of the tax year and will it automatically be used to buy the funds I've invested in or will I have to do this manually? TIA

It takes 8-12 weeks. It will become a pending buy order, then you will get a contract note once the order has been completed. If you put in money without assigning a fund to be purchased, them the tax relief will sit as cash on the account, which you can then invest, or use to pay fees.

Fab, thank you, I was hoping it wasn't too long - guess it's just taxman stuff causes a bit of a delay.

Similar question, in order to claim higher rate tax relief, do you have to complete a full tax return? I haven’t made any contributions to SIPP lately, just employer pension but also wondering if this would give me more flexibility to take earlier if needed.

@ShipwreckSunset If you have no other reason to complete a self assessment, you can call or write to HMRC.

www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees