Pension investment or ordinary fund

[TankFlyBossW4lk]

I have a defined benefit pension. It was due to breach LTA threshold in 5 years. Now the LTA threshold has been removed.

I also have a ltd company and I want to put the company money into a Vanguard pension investment plan.

Am I better to put the company money into a non pension fund for fear of breaching another tax threshold (eg the annual allowance or a reinstated LTA) ?

Thank you for any advice

LTA charge has been put to £0. LTA is still calculated and reported when accessing pension benefit. Law has not been changed yet, likely will be some time yet before it goes through. I anticipate that maybe April 2024.

Could a new Government change the rules, yes. Would that be popular, no. Would they put some measure in so that there is a protected right for those who contributed to pensions during a period where LTA charge was £0, quite likely but no one knows.

Vanguard can be fussy about employer contributions to their SIPP, so check that you can make those given how you have your company bank account setup. I think the payment card used has to be in your name, but check with Vanguard support.

Nobody knows what will happen, so no way of knowing what may be 'better'. Hedge your bets by doing 50/50 perhaps... some to ISA, some to pension.

Though LTA is to be abolished the amount of tax free cash that can be taken has been frozen at its current level.

Do you have any pension protections Already in place?

What is your overall objective here? Are you trying to reduce your Corporation Tax by making a company contribution to your pension?

Really, your accountant is going to be best placed to give you this sort of tax advice as they will have a full overview of your personal position. Then see a financial adviser if you need specific product and provider recommendations that are the most suitable for you.