Nick D
Joined: 4/3/2024
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Do SIPP contributions change your tax band, meaning I won't get higher/additional relief?
Hi, In previous years my taxable income after deductions and SIPP contribution was still above 50k, so I fell into the higher rate tax band. This year, to simplify figures, my gross taxable income was 60k, so I paid 10k into my SIPP to ensure I fell into the basic rate tax band. I will receive the automatic 20% tax relief for the SIPP payment, but will I be eligible for the higher (additional) 20% relief via my tax return? I was concerned as for this year I fall into the basic tax band and I may not qualify for this additional relief. I was advised this may not be the case as the calculation for SIPP relief may be different, dependent on your gross income. Thanks, Nick