Pension/tax relief

Norvegia

Hi all, I'm new to this and would hope that there is someone out there that knows what I'm trying to achieve. Here goes.
I am self employed and a lower rate tax payer. If I open a pension and pay £2880 into it. Then receive £720 top up from the tax man.
Is that as far as the tax advantage goes or can I subtract my initial investment of £2880 from my annual taxable earnings when filing my tax return. Or is that just wishful thinking?

Thanks in advance

dunstonh

Is that as far as the tax advantage goes or can I subtract my initial investment of £2880 from my annual taxable earnings when filing my tax return. Or is that just wishful thinking?

You only get tax relief once.

The pension itself gets tax free growth (no CGT and no tax on interest distributions)

ceeforcat

You could,of course, be a higher rate taxpayer in which case you would be due an additional £720 in tax relief.

Norvegia

Thank you for your replies that has cleared that up for me. Trying to learn a bit at a time