Personal Tax Position re Pension Contributions

relaxtwotribes

If I have a low salary of, say, £7,000 and a high dividend income of, say, £50,000 I will be in the higher rate tax bracket. Does anyone know what tax relief do I get if I make a pension contribution of £7,000?

Bean_Counter

Whenever I claim for higher rate relief on my pension contributions, this is given by extending the basic rate band accordingly. Having said that, it depends on how you are paying your pension contributions, net or gross.

I would say phone HMRC. They are usually pretty good on questions like this, and you are more likely to get a definitive answer.