Definition of 'non earner'

A question about : Definition of 'non earner'

I am considering making a contribution to a SIPP, for tax relief purposes but I'm unsure as to whether I am classified as a 'non earner.'

I am aged 60 and retired from employment. In addition to my private pension, I have net rental income of around Ј11,000 pa. Can anyone tell me whether the rental income would be classified as 'earnings,' or as 'investment income?' I'm suspecting it may be the latter, as I don't pay NI contributions, although I do pay tax.

I'm thinking that it would be well worth my while, if I could benefit from making a Ј10,000 contribution into a SIPP. However, I suspect that the maximum tax-free contribution I could make may be Ј3,600.

Please can anyone enlighten me?

Many thanks

Best answers:

• You have no "earned income". This doesnt include rental or investment income.
  This limits you to the Ј3.600 gross pension contributions which limits you to Ј2,880 actual payments.