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Topping up DC pension pot and carry forward question
Comments
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According to this NEST operates as relief at source (just like personal pension schemes)
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Thank you! That's very helpful to know that.
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Now that is cleared up , the calculation of the maximum she can add to a pension this tax year is as follows:
Gross salary minus ( £3.7K multiplied by 1.25, to get the gross contribution being made at work) = the gross amount she can now add to the other pension.
If you take that figure and multiply it by 0.8, then that is the actual amount she can add, and the provider will add 25% tax relief .
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They will add 25%, but that is actually tax relief of 20% (20% of the gross).
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Thank you for all that help. I now have the correct amount we can contribute.
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