What's included in pension annual allowance?

OfficeMan

I'm a higher rate taxpayer with a personal pension that I've been regularly contributing to for about 15 years. I'm considering making an additional payment into the pension before the new tax year, and want to calculate the maximum allowance over the last three tax years.

I realise I need to deduct the gross amount that I've contributed to the pension in the various years from the allowance, but I'm not sure what's included in this. Obviously the amount I've contributed plus the basic tax relief is included, but do I also need to include the higher rate tax relief that I've claimed back on my tax return, or the contracted out contributions in the old 2012 statement? There doesn't seem to be a definition of "gross contributions" that I can see on the HMRC website.

Pinner_Ram

Gross contributions made by you; A £10,000 gross contribution means you paid in £8,000 and the pension platform claimed back £2,000 and paid it into your pension to make £10,000 in all. You then claimed another £2,000 (if a 40% taxpayer, more if you pay at a rate of 45%) back via your self assessment tax return.


Total in pension £10,000 at a net cost to you of £6,000.


Add to this contributions made, if any, by your employer.


You may wish to make any extra contributions prior to 16 March (budget day) rather than leaving it until 5 April.


Annual limit currently £40,000.

OfficeMan

Thanks for the quick response. That explains it nicely.