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Posted Mon, 12 May 2025 05:24:21 GMT by StevenF
Hi If I'm not working, and have substantial savings interest, then: A) I believe I can use my personal allowance before paying tax on the savings? B) if I earn more interest than my personal allowance, but then pay into my pension, can I claim tax relief on the amount paid into my pension? Cheers Steven
Posted Mon, 12 May 2025 11:09:11 GMT by Clive Smaldon
Not HMRC, interest is not earned income and doesnt factor for pension contirbutions, thats employment/self employment only, with the exception of stakeholder of up yo £2880 net (£3600 gross) but this wont alter your tax position as the relieif is given in the pension fund not against any tax liability so your tax position would be unaltered
Posted Tue, 13 May 2025 09:16:51 GMT by HMRC Admin 19 Response
Hi,
a. That is correct.   
b. As you have no earnings, the maximum you can pay into a pension is £2880, net.
Thank you.

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