Adjusted Net Income and SIPP Tax Relief

The guidance for calculating adjusted net income states: Step 3 - take off pension contributions If you made a contribution to a pension scheme where your pension provider has already given you tax relief at basic rate, take off the ‘grossed-up’ amount - what you paid plus the basic rate of tax. So, for every £1 of pension contribution you made, take £1.25 from your ‘net income’. If I put £6000 in my SIPP on the 01/04/2024 and my SIPP provider doesn't add the tax relief for another 6-8 weeks, do I still deduct £7500 from my taxable income when calculating my adjusted net income for the 2023/2024 tax year? I'm essentially asking if the relief is counted from the date you make the pension contribution or the date the relief is paid into your SIPP. Thanks.

Hi,

Yes, the payment you made into your pension scheme arises in 2023 to 2024 tax year, so the relief is calculated for that tax year

Thank you.