Ian Mills

I have two questions regarding pension tax relief on pension contributions for higher rate taxpayers... Here is a hypothetical example .... Salary = £80K Contribution to SIPP from net pay = £16K SIPP provider automatically adds £4K to increase the contribution to £20K (basic rate tax relief). I claim back a further £4K through self assessment (higher rate tax relief). 1. The higher rate tax relief is received as a cash refund from HMRC directly to my bank. Is this cash classed as income and do I need to pay income tax on it? 2. I need to calculate how much of my annual allowance I have used. Have I used £20K (the amount paid into the SIPP including basic rate tax relief) or £24K (the amount paid into the SIPP + basic rate tax relief + higher rate tax relief)?