andrea previtali
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Tax return declaration on pension contribution
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.