Extending basic rate income tax band

RG2015

molerat said:

RG2015 said:

molerat said:

SIPP UFPLS, £2,700 (gross £3,600 but excluding 25% tax free)

Do you put £2880 / £3600 into the SIPP each year ?

Yes, I have done this for the last 3 years.

So lifts your 40% threshold by £3600

Does it?

My last P800 included the net £2,700 as pension income so I assumed that this was just added to my taxable income, hence is included in the 20%/40% band determination.

PS you have now got me thinking. If this is the case how would I claim the tax concession on the £3,600?

RG2015

RG2015 said:

molerat said:

RG2015 said:

molerat said:

SIPP UFPLS, £2,700 (gross £3,600 but excluding 25% tax free)

Do you put £2880 / £3600 into the SIPP each year ?

Yes, I have done this for the last 3 years.

So lifts your 40% threshold by £3600

Does it?

My last P800 included the net £2,700 as pension income so I assumed that this was just added to my taxable income, hence is included in the 20%/40% band determination.

PS you have now got me thinking. If this is the case how would I claim the tax concession on the £3,600?

Okay I have just done a quick Google check and see that I would claim a £3,600 extension to my 20% tax band.

This is excellent news and once again the MSE forum has come up trumps for me.

@molerat , Many thanks for this information!

PS I need to remember that I will lose this at 75 just when I really will need it.