Basic question on tax relief

ColdIron

Basic question if I may

After I retire I want to continue to contribute to my personal pension with my already taxed savings/cash. Will my pension provider automatically add 20% tax relief onto my contributions or will I need to claim it on my self assessment?

dunstonh

Basic rate relief is handled at source. So, no work required from you.

saintalan

Hi ColdIron,

Just wanted to ask if you were aware that you can only claim Tax Relief on Earned Income (not savings).

There is, however, an allowance which you can still pay into a personal pension scheme and benefit from basic rate tax relief (20 per cent) on the first £2,880 a year you put in. In practice this means that if you pay £2,880 the government will top up your contribution to make it £3,600. There is no tax relief for contributions above this amount.

Alan

xylophone

http://www.pruadviser.co.uk/content/support/technical_centre/tax_relief_members_contributions/

might be of interest.