Adjustment to Personal Allowance for Personal Pension contributionsl Pension

I'm trying to understand the maths behind the amount my personal allowance is increased by to reflect my personal pension contributions. If I am a higher rate tax payer and contributing £3,061.36 per annum the increase in personal allowance should presumably be this amount grossed up by 40% i.e. £3,061.36/(1-40) =£5,102.27 Is that correct?

Hi Christopher Warenius,
Your Personal Allowance is £12570 in 2022 to 2023 tax year.
If you are a higher rate taxpayer, who pays into a pension scheme and is seeking to claim higher rate relief, your Personal Allowance does not change.
Instead, the basic rate band which is naturally between £12570 and £50270, changes.
You deduct the Personal Allowance from all of your taxable income, to find the amount that you will pay tax on.
Any amount above £50270 will be taxed at 40%.
If you are claiming higher rate pension relief for a pension payment of 3062, you add this figure to the basic rate band £50270 to become £53332 in this example, thus increasing the income taxable at 20% by 3062 and reducing the income taxable at 40% by 3062.
Have a look at:
Income Tax rates and Personal Allowances
Thank you. 

Thanks for this. Apologies but I think I asked slightly the wrong question. What I am trying to make sense of is the number in my tax code. If a "normal" tax code is 1257L and mine is, say, for ease, 1357L I understand that this is because an additional £1000 is being treated as tax free for pension contributions. But where doesthe £1000 come from is it; a) the net contributions (i.e what is actually paid in by me each year) b) the annual contributions grossed up by 20% c) the annual contributions grossed up b 40% d) something else? c) the contr

Apologies, I realise there was a typo in the preceding post at the end. Please see the correct post below: Thanks for this. Apologies but I think I asked slightly the wrong question. What I am trying to make sense of is the number in my tax code. If a "normal" tax code is 1257L and mine is, say, for ease, 1357L I understand that this is because an additional £1000 is being treated as tax free for pension contributions. But where doesthe £1000 come from is it; a) the net contributions (i.e what is actually paid in by me each year) b) the annual contributions grossed up by 20% c) the annual contributions grossed up b 40% d) something else?

Hi,
The gross amount of pension contributions are recorded - the allowance is then given in the code to give the extra 20% tax relief to higher rate taxpayers.
Thank you.

Hi,

There can be various allowances that can be added. If you have a personal tax account  you can view your tax code online:

Personal tax account: sign in or set upPersonal tax account: sign in or set up

You can also contact our Income Tax team for a breakdown of your code.

Income Tax: general enquiries

Thank you.