Rachel442
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Claiming higher rate tax relief on pension contribution
I’m a higher rate tax payer and paid a lump sum of £40,000 into my pension in 23/24. My pension provider added basic rate tax relief of £10,000. I need to claim back the higher rate tax relief in my self assessment. In my previous self assessments this was calculated by adding £50,000 to my tax free allowance. This time the £50,000 has been added to my basic rate amount and the rebate amount is therefore lower. Why has this changed? As I’ve paid 40% tax on the £40,000, the tax relief should total £26,666. £10,000 has been added by my pension provider, how do I claim the remaining £16,666? If I my calculation is incorrect please could someone tell me why?