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Posted Fri, 21 Jun 2024 11:50:40 GMT by Jeremy Gray
Hi, In error, I made a £60,000 personal contribution to my SIPP (should have been £48,000). The scheme provider will ordinarily reclaim basic rate tax relief of £15,000 which will take me over the £60,000 Annual Allowance. I have no carry forward and am a higher rate tax payer. The scheme provider has refused a refund under the "Refund of excess contributions lump sum" (not sure why, given it will clearly be over) but instead has offered to re-classify the £60,000 as a gross contribution and not claim the basic rate relief. OK - but is that valid and if so, how do I reclaim the correct amount of tax (i.e. 20% basic + 20% additional)? In the SA return there are boxes for when basic relief has been claimed (Box 1 / 1.1) but the boxes for where relief has not been claimed (Box 2 / 3) relate to RAC or employee schemes which this isn't.
Posted Wed, 26 Jun 2024 11:20:34 GMT by HMRC Admin 21 Response
Hi Jeremy,
You are able to pay more into your pension than the pension threshold.  All that happens is that the amount above the threshold does not qualify for tax relief and is declared in a self assessment tax return, where the tax payable on the excess is calculated.  Your pension provider may agree to pay the tax due out of your pension pot.  If not, you have to pay the tax.  As your pension provider will not claim tax relief, you would need to claim this in your tax return, using box 2 on page TR4 of SA100.
Thank you.

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