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UK Tax penalties for surplus?

D

didster

Member
Chapter 5 summary mentions the risk of excessive funding resulting in tax penalties.

While I vaguely remember (from ST4 most likely) that this could be done to avoid abuse of incentives, I didn't know the UK specifics.

So I reread the whole chapter 5 and couldn't find anything about this.

Does this (still) apply?
If so on what terms.
Did I miss the main text that this is supposed to be summarising?
Is it that there is no tax concession lost if you are say 500% funded, but rather it's trying to say that
  • you can only get a limited amount of tax relief for any given tax year
  • if you ever want to take a refund of the excess funding, you'll need to pay some tax
 
Hi Didster

Page 22 of Chapter 3 gives a bit more detail on the surplus restrictions as they now stand in the UK.

Elizabeth
 
Good, I was aware of those restrictions.
Thanks Elizabeth.

For some reason, my mind went on to maximum funding levels, and there don't seem to be any.

Hopefully, I'm in the right frame of mind today. Sigh, knowing the UK specifics is one thing, but reaching the point where you automatically incorporate these details into your decision making is another giant leap.
 
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