Another LGPS Post Sorry !

berbatov10

Morning all. I work for Civil Service and am in the Alpha Scheme. I wish to make a lumps um purchase of added pension. Am I correct in thinking this will only attract tax relief at the amount of tax I have paid? By which I mean for example I wish to buy £10,000 of added pension, however I only paid £1000.00 tax on my earnings, so i can only claim tax relief on the first £1000 I contribute, the other £9,000 I invest will not attract tax relief.  

Andy_L

Correct,

I'm talking nonsense as I totally misread your post.

 You can claim tax relief up to the value of the tax you paid. So you would get 20% tax relief on the 1st £5k (20% of £5k = £1k )

I'm not sure if that is reduced by the amount of tax relief you get on your contributions to Alpha or if that is an additional bonus as its deducted from source - ie before you pay tax



Note that the CS Pension scheme is a different scheme to the LGPS, so make sure you read the right documents on-line

xylophone

See this thread

https://forums.moneysavingexpert.com/discussion/6194603/tax-relief-for-buying-nhs-additional-pension-and-paying-lump-sum/p3