DaveW
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Tax and pensions
Hi, I am currently retired and in receipt of a local government pension. I also have an active private pension which I have not yet drawn from. As I understand it, if I contribute to my private pension, it is increased to account for the refund of 20% income tax. My question is, if I top it up my private pension from my monthly Local Authority pension payment, would that be considered as income and therefore taken from there before the tax is calculated as it was during employment? In effect would this increase my personal allowance?