If you earn over £150,000 the amount you can invest is subject to ‘adjusted income’. How much you can invest is tapered, so for every £2 above £150,000 the annual allowance is reduced by £1.
This means if you earn more than £210,000 a year (£60,000 over the threshold), the most you can pay into your SIPP each year then reduces by £30,000 to just £10,000.
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Risk Warning
The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.
Selftrade does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.
The extent and value of any ISA tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change.
The extent and value of any SIPP tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change. If your options change regarding an employer's pension scheme you may wish to review your financial situation. Once in a pension your money is only accessible, in general, from age 55.