Non-tax payer and pension contribution?

Johnhowell

I wonder if anyone could help with a question we have?

My partner has continued contributing a small amount into a previous pension scheme (Scottish Widows) and the amount is increased by the tax claimed by SW each time.

However, recently her work hours have been reduced and now earns less than the tax threshold, so no longer pays any income tax.

Does this affect the ability for SW to claim the tax element on the pension contribution?

Many thanks,
John

xylophone

Even if your partner had no relevant income at all, provided that she was under 75, she could still contribute up to £2880 net per annum to a personal pension/stakeholder and receive up to £720 in tax relief.

xylophone

Her only income could be earnings of (say) £12000 per annum so that she paid no tax - she could still contribute up to a net £9600 to a personal pension/stakeholder and receive tax relief of £2400.

Johnhowell

Xylophone,

Many thanks for the clarification. Good to know.

John