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Posted Tue, 23 Jan 2024 19:30:03 GMT by
Can please confirm if SIPP contributions deduct from the 'Total income on which tax is due' line, irrespective of the type of income? Here, the example is approx. £90k of 'Pay from all employments', approx. £50k of 'foreign savings', and approx. £8k of 'Interest from UK Banks...' - totalling approx. £148k. If there were also £48k of SIPP contributions in a given tax year, would this bring the 'Taxable Income' down to £100k, and thereby ensuring that no personal allowance would be lost? Many thanks.
Posted Fri, 26 Jan 2024 13:56:45 GMT by HMRC Admin 25
Hi Andrew Evans,
No. the payments only increase the level of income that is taxed at basic rate. as the total income is over £100k, reduced personal allowances would still apply.
Thank you. 
Posted Sat, 10 Feb 2024 16:45:38 GMT by
Thank you for your response. Can I confirm that 'pay from all employments' and 'foreign savings' are treated equally for the means of the 'total income on which tax is due' line? For example, again using the numbers above, that if £48k of 'pay from all employments' was given up via salary sacrifice (and assuming £0 to £12k other pension contributions to stay within the 2023/24 pension allowance of £30k), that this would bring 'Taxable Income' down to £100k (with £42k of 'Pay from all employments'), thereby ensuring that no income tax personal allowance would be lost? Thanks again.
Posted Sat, 02 Mar 2024 10:48:22 GMT by vans92 vans92
Hi Admin - it appears you have responded to a different question. Can you confirm the answer to my earlier post? Thanks.
Posted Mon, 04 Mar 2024 10:55:27 GMT by HMRC Admin 19
Hi vans92,

Yes, pay from employments and foreign income is what your tax is based on. Please see our previous reply for relief on pensions.

Thank you
Posted Tue, 05 Mar 2024 12:26:32 GMT by HMRC Admin 10
The answer previously given was in responce to your question.

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