Pension Tax Relief at 40%

jem16

lkalka wrote: »

Lets say I was only £1500 into the 40% bracket and I paid 2k into a pension what would the exact calculation be for the refund for that year?

If you are talking about the earlier years when the tax rate was 22% then it would be 18% of the £1500 - £270.

You would only be entitled to 22% tax relief on the rest of the pension payment and you already have that.

usedandabused

lkalka wrote: »

Yes I realise the claim will be for 18% for the years in question because the basic rate was 22%.

No I havent been submitting a tax return because the tax office said I didn't need to anymore because it was always roughly the same each year.

PS the first 20% is not source because it's a personal pension (so it goes direct into my pension).

my gran still submits tax returns even though it is roughly the same each year as well but then again she has to submit a tax return because of trust income she used to receive and rental income she gets from her flat.

Best bet is to talk to your tax office because you don't want to divulge too much info on a public board, and in that respect any 'tax advice' given could be incorrect because it is all dependent on your circumstances.

Debt_Free_Chick

usedandabused wrote: »

Hehe, you've a tax brain the size of europe

:rotfl::rotfl::rotfl:

I'll take that as a compliment, thank you

I'm a simple Pensions Manager, but these new tax rules are horribly complex. To be honest, good on you for raising it as it could have been relevant :T

I just read about the new rules and wanted to sound clever, i should really give it up shouldn't I?

Knowing the full details of the rules may well be "clever". Equally clever is knowing to spot situations when the new rules might apply - and thereby flagging up a potential problem

So, no - don't give up

i barely earn over the personal allowance, so the rules don't really effect a little old destitute like myself :rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Even more generous of you to point it out.

I think you're probably a bit of a sweetie

usedandabused

aww you're really kind, and yes please do take the brain the size of europe as a compliment.