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Posted Mon, 20 May 2024 05:44:56 GMT by Milo1998
Hi. I'm a higher rate/additional rate tax payer and last tax year made a £19659 contribution to my personal pension (gross, inc the basic rate tax relief). I added this into my self assessment form to claim tax relief on higher rate but in the calculation in the end it states "Your basic rate limit has been increased by £19659 to £57,359 for pension payments". Since the basic rate threshold is £50270, I was expecting my basic rate limit to increase to go to £69929. Why has hasn't this happened? How can I claim the higher rate tax back on the full amount of this pension contribution?
Posted Thu, 23 May 2024 14:17:50 GMT by HMRC Admin 20 Response
Hi Milo1998,
The basic rate band was £37700.
As you claimed pension relief this tax band was increased by £19659 making the tax band now £57359.
This increase gives you the relief due on the pension contributions.
Thank you.

 

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