Higher Rate Tax Relief: Pensions and Savings

ossian

Hi ,

After ignoring my pension situation and hating my tax bill for many years I have turned over a new leaf this FY. I am now paying AVCs totalling the same as my higher rate tax liability. Question...

1. If I saved money into a bank account (which I would have to pay tax on the interest) could I get an equivalent amount back from the taxman by paying into a SIPP and claiming tax relief back from the IR?

OR...

2. If I contribute more than my higher rate taxable income into my pension can I become eligible for savings to be taxed at the basic rate?

I am probably displaying my total ignorance here but I've searched the internet and Inland Revenue websites and have failed to find a clear answer.

Thanks,
Ossian :beer: