Home FAQs Pension Tax & Inheritance Is it illegal to pay tax-free cash back into a pension?
Is it illegal to pay tax-free cash back into a pension?

Is it illegal to pay tax-free cash back into a pension?

It is not automatically illegal to pay money into a pension after taking tax-free cash. However, if the arrangement meets the pension tax-free cash recycling rules, HMRC may treat the lump sum as an unauthorised payment and tax charges may apply.

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