Tax relief on SIPP contribution

[DiviLuvva]

I should know the answer to this, but..

I have a SIPP in capped drawdown, so I can continue contributing with being subjected to the MPAA (confirmed by A. J. Bell).

In the next FY I would like to draw about £12,500 from the SIPP, equal to the Personal Allowance. Hopefully I will also have self-employed earnings of circa £35,000, but they'll arrive much later in the tax year.

Now I'd like to put that full £35,000 (gross, so £28,000 net) back into the SIPP.

It's not re-cycling because the contribution is from earned income.

Now will I obtain tax relief on the full amount I put into the SIPP; so will effectively pay no tax next FY?

Something tells me that's not correct so I hope someone with a more technical knowledge of tax and pensions will put me right.

(Although it's not relevant, I've received no self-employment income this FY due to Covid restrictions, so I've drawn income from the SIPP up to the current annual maximum allowed by the cap. I want to replenish it.)

[NeilW]

My understanding is that if you have taken income in excess of your cap then the cap protection is lost and the pension is converted to a flexi-access pension and the MPAA kicks in

Which means the maximum you can contribute to the pension tax free is £4000 per year.

It's only if you haven't exceeded your pre-April 2015 cap that you can continue to contribute up to £40K per year.

[DiviLuvva]

Thanks Neil,

I haven't taken any annual amount in excess of the cap since I originally put it into drawdown in 2010. The annual cap is currently £38,000 fwiw.

AJB confirmed last year that it wasn't subject to the MPAA.

Given that, and going back to my original question: if I draw income of say £12,500 (the PA) from the SIPP and have earnings of £35,000 and pay that gross (£28,000 net) into the SIPP am I allowed the full £7000 tax relief on the contribution?

Or am I missing something?