Does tax relief on Pension Contributions affect Gift Aid Contributions?

marbrock

Do I need to earn enough so that my tax bill covers both the tax relief on contributions to a personal pension and any contributions made to charities as Gift Aid?

E.g. Earn enough to have a tax bill of £1500, pay £4000 into a pension and get £1000 relief, pay gift aid contributions which get £600 relief so £1600 relief but only £1500 tax due. Will I then be asked to pay the difference?

Dazed_and_confused

No. You have to be within the earnings limits (including carry forward in the unlikely event this is applicable) for making the pension payment but you don't have to paid tax equivalent to the basic rate tax relief the pension company adds.

You do though have to paid enough tax to cover the gift aid tax relief.