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Maximising Higher Rate Tax Relief When Opening First SIPP

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  • DRS1
    DRS1 Posts: 2,891 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Interest within the PSA still counts as taxable (even though it is taxed at 0%).  So if that interest is £1k you should add £1k to the £102k figure.  You may not know the precise figure so it is probably best to over estimate it even though that may mean you contribute a bit too much to the SIPP.

    The pension contributions to your DC scheme are relief at source contributions.  You would deduct £7k instead of the £8750 I guessed.
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