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Posted 2 months ago by mathsjunky
This year I have received a salary and I am also receiving some UK dividends. I would like to make a pension contribution to reduce my tax bill. Am I able to make a pension contribution that is equal to the sum of my salary and the dividends and offset the income tax and dividend tax that would otherwise be due on these? I have enough carry forward allowance to do this, but I am not sure if the dividends count towards taxable income in this way. thank you!
Posted 2 months ago by maxb
As you suspect, dividends are not eligible for this - https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100#earnings
Posted 2 months ago by mathsjunky
Got it. Thanks for the help.
Posted about a month ago by HMRC Admin 32 Response
Hi,
You can get tax relief on private pension contributions worth up to 100% of your annual earnings. Dividends are taxable income but not earnings.
Thank you.

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