Higher rate tax payer

kitty5

My husband will earn approx £46,000 by the end of this tax year putting him into the 40% tax bracket for a small portion of his salary.

We want to put a lump sum into a pension and take advantage of the 40% tax relief.

Roughly how much would we need to put in to take full advantage?
Thanks in advance.

OldBeanz

Roughly, find his tax code, take off the letter at the end, add a 0, subtract this from £46k.

ffacoffipawb

OldBeanz wrote: »

Roughly, find his tax code, take off the letter at the end, add a 0, subtract this from £46k.

Deduct the 20% tax allowance as well!!!

That gives the gross. multiply by 0.8 to give the net contribution. A further 20% is reclaimable from you tax return.

xylophone

http://www.hl.co.uk/pensions/interactive-calculators/tax-relief-calculator

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

kitty5

Thank you very much