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  • SIPP and personal allowance

    Hi, I have a question about SIPP contributions and personal Allowances for income and savings. I currently earn £50,140 so am a lower rate tax payer, however, I am due to earn around £5,000 of interest from taxable savings outside of an ISA. As I understand it, this now makes me a higher rate tax payer as I earn £55140 from a combination of employment and savings interest. I will contribute a total of £5556 toy SIPP this year which receives 20% tax relief from my SIPP provider. My question is: 1. How do my SIPP contributions affect my personal Allowances for income tax and my Personal Savings Allowance? Does it reduce my tax liability for my earnings over £50270 and bring me back into the basic rate tax band? 2. How much would I be able to claim back on my SIPP at the additional 20% tax relief for higher earners? Or do my SIPP contributions bring me back into the basic rate tax band? Thanks in advance