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Posted Fri, 03 Jan 2025 20:29:05 GMT by andrea previtali
Hi I need a clarification on the declaration of pension contribution to a SIPP for 40% tax band If a contribute £6000 to my private pension, should I have £2000 refund? £6000 (net salary at 40% tax) / 0.6 = £10000 (original gross salary) £10000 * 0.8 = £8000 total contribution to pension £10000 * 0.2 = £2000 refunded through the tax return But that is different from £6000 + £6000 * 20% (pension tax relief) = £7200 total contribution to pension £10000 - £7200 = £2800 refunded through the tax return which one is correct? Thanks Andrea P.
Posted Fri, 17 Jan 2025 09:58:27 GMT by HMRC Admin 21 Response
Hi,
We would need to access your record to check the calculation. You can contact HMRC at:
Self Assessment: general enquiries.
Thank you.
Posted Sat, 18 Jan 2025 15:30:13 GMT by maxb
Hi Andrea, Neither of those are correct - the actual situation is: £6000 (net contribution) plus £1500 (tax relief claimed at 20%, £6000 / 0.8) = £7500 total contribution to pension £10000 - £7500 = £2500 effectively returned to you but itself subject to Income Tax as it is returned; if at 40%, £2500 * 0.6 = £1500 net refund

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