Tax Year End
The tax year-end presents an opportunity to maximise your pension contributions and make the most of your allowances. If you're considering boosting your Self-Invested Personal Pension (SIPP), now is the time to act.
Establishing a New SIPP
If you're looking to establish a new SIPP, our Sales Support team can typically process your application within seven working days. To ensure your SIPP is established in time to accept a contribution by bank transfer for the current tax year (2024/25), please note the following deadlines:
- SIPP Establishment Deadline: Tuesday, 2 April 2025
- Contribution Payment Deadline: Friday, 4 April 2025
We also accept contributions via cheque. A cheque payment will be processed on the date it is received, provided we have received a fully completed SIPP application and all necessary supporting documents.
How We Can Help
Our Sales Support team is on hand to provide guidance and support before and throughout the application process. Please ensure that all required forms including the anti-money laundering identity verification documents and any investment account opening forms are included.
How to apply
You can start your SIPP application today by:
- Using our Online Application
- Downloading our Application Forms
- The minimum fund size for a SIPP with Dentons is £50,000.
Please note: Dentons does not provide financial advice regarding the suitability of investments for your personal circumstances.
Making Contributions to an Existing SIPP
If you already have a SIPP with Dentons and wish to make a contribution before the tax year-end, ensure your bank transfer payment is received by Saturday 5 April 2025. For contributions by cheque we will need to receive the cheque by Friday 4 April 2025 in the Dentons office.
Important Considerations
- Annual allowance: This is the maximum amount of money an individual can contribute to their pension each tax year without incurring a tax charge, currently set at £60,000.
- Tapered Annual Allowance: This has been in effect since 6 April 2016 and may impact clients based on their threshold and adjusted earnings. Other limits, such as the Money Purchase Annual Allowance and pensionable earnings, may also apply.
- Cheque Payments: Cheques should be made payable to the client's SIPP (e.g., Dentons SIPP J J Bloggs).
- Bank Transfers: The client’s default SIPP bank account must be open to receive funds.
- Lifetime Allowance Protections: Clients with enhanced protection or fixed protection (2012, 2014, 2016) should be aware that making a contribution will result in the loss of their protection, unless that Protection was in place by 15 March 2023.
For more details on pension contributions, please speak to your Financial Adviser.
Learn more
Find our guide to permitted contribution allowances lifetime allowance protections and pension tax relief.
Frequently Asked Questions
When is the tax year end in the UK?
The UK tax year ends on 5 April each year. To maximise your Self Invested Personal Pension (SIPP) contributions and tax relief, ensure contributions are made before this date to count towards your annual allowance for that tax year.
What is the annual allowance for 2024/25?
The annual allowance for the 2024/25 tax year is £60,000. This includes personal, employer, and third-party contributions. Contributions exceeding this may incur a tax charge unless covered by carry forward rules.
Can I carry forward unused annual allowance?
Yes, you can use the carry forward rule to utilise unused allowance from the previous three tax years, provided you were a pension scheme member during those years and have sufficient earned income to cover personal contributions.
How much tax relief do I get on my pension contributions?
Basic-rate tax relief of 20% is automatically added to personal contributions. Higher-rate (40%) and additional-rate (45%) taxpayers can claim extra relief via self-assessment, reducing their tax bill.
Do employer contributions to my SIPP affect my annual allowance?
Yes, employer contributions count toward your £60,000 annual allowance but are not limited by your earnings. They may also qualify for corporation tax relief for the business.
Can I consolidate multiple pensions into my SIPP?
Yes, consolidating pensions into a SIPP can simplify management and potentially reduce fees. However, check for exit fees, loss of benefits, or guarantees before transferring.