Pension tax relief

Some help please. I am looking to make a £20,000 contribution into my SIPP . The amount is limited due to only working one day a week and earning only £20,000 pa, which caps the amount I can put in my SIPP, in respect of my earned income from employment . I do receive a pension from one of my previous employers which takes my total income per annum over £50,000, thus I fall into the 40% tax bracket. The question is will I be able to claim 40% tax relief or only 20% . Is my pension income included in respect of the tax relief I will be able to claim. As mentioned , I am aware that any pension contribution into my SIPP is capped at the level of earned income, i.e. what I receive from my employers and pay tax and NI on .

Hi Cornish1960,
If your income takes you into the higher rate tax bracket then yes you can claim relief on your pension contributions if the payments are made from your net income Tax on your private pension contributions.
Thank you.

Please can I ask a question on this. I can’t find how to post a new question sorry. Is the tax relief claimed back when you are a 40% tax payer based on gross pay or taxable pay? My gross pay estimate is £58k and taxable £53800. The 20% at source relief I have but the extra 20% relief will that be based on £58K or £53800? I been told conflicting info by different people. Thanks

A new question can be posted from https://community.hmrc.gov.uk/customerforums/sa - scroll to the bottom of the page to find the "Create a new thread" form. I don't really understand the question you're asking, though... I'd say gross pay equals taxable pay because all pay is taxable? So I'm not sure what the other figure is? In any case, the tax relief on pension contributions isn't calculated with reference to just a pay figure, but potentially considers all other sources of taxable income in the year too, e.g. savings income. Could you rephrase your question in a different way, potentially illustrating with an example?

Hi,
The extra 20% relief due would only apply to the amount of your taxable income that is liable at the higher rate.
Thank you.

Not HMRC...Max, Gross pay is total salary, Gross taxable pay is after allowable dedutions for tax (pension and any non taxable items), this is often shown separately on payslips, though P.60's only show taxable. Regardless, the HMRC has answered.