Automatic tax relief on pension contributions.

RD69

Hello forum, this is my first post - please extend any newbie forgiveness.

Does the automatic tax relief on pension contributions apply if one has no income?

I recently stopped working and have been supporting myself using savings. I'm 54 and not retired, just taking a bit of a break - in effect I have no pay-slip and pay no income tax. However I've continued to make contributions to a stakeholder pension and this has had 25% tax relief added automatically.

So I wonder, are the tax office going to send me a bill to get it back? Should I tell the pension company to stop claiming the relief?

Thanks & regards

molerat

If you have no income you can contribute a maximum of £2880 which will be grossed up to £3600 by the added tax contribution of £720.

xylophone

If you have earned income in this tax year you will not be confined to £2880/£3,600.

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