CSP Lump Sum pension purchase

berbatov10

Good Morning 

I had hoped to buy added pension with regular payments on the Alpha scheme, this is no longer possible.

I have been offered the chance to pay in a lump sum in April of this year. Can someone advise me ( I cannot rely on CSP pension department as its their lack of response that has prevented me from making monthly contributions) van anyone advise will any lump sum attract tax relief at time of contribution or will I have to claim it via my SA tax return 

Thanks in advance

Dazed_and_C0nfused

Lump sums like this don't get tax relief at the point you pay them.

And they don't get any automatic tax relief like "relief at source" contributions do.

The personal tax saving entirely depends on your total taxable income and any other relief and allowances.

Some people will get £0 tax relief from this type of contribution.

hugheskevi

If you make the lump sum payment through payroll it will get tax relief at time of contribution via PAYE and net pay system.

If you pay directly (cheque, debit card, etc) then zero tax relief will be applied when you make the contribution. You can claim that back via SA, or alternatively you could amend your Tax Code for 2022/23 (assuming the purchase is after 6th April) to get the relief much earlier.

xylophone

See this post

https://forums.moneysavingexpert.com/discussion/comment/77861509/#Comment_77861509
and all previous relating to "concessional relief".

berbatov10

xylophone said:

See this post

https://forums.moneysavingexpert.com/discussion/comment/77861509/#Comment_77861509
and all previous relating to "concessional relief".

What a minefield ! Thanks for taking the time to share this!

Dazed_and_C0nfused

berbatov10 said:

xylophone said:

See this post

https://forums.moneysavingexpert.com/discussion/comment/77861509/#Comment_77861509
and all previous relating to "concessional relief".

What a minefield ! Thanks for taking the time to share this!

Not a minefield that will be of any concern to you though.

will I have to claim it via my SA tax return 

If you complete a Self Assessment return you simply need to enter the contribution in the relevant box on the return and you get any relief due via your Self Assessment calculation.

Nothing more you need to do.