Masquedefer Curran

Hi Thank you for your reply. I have a follow up question. My unearned income from pensions is 12500 so I qualify for the full £5k starter savings ambiance. I also paid £2880 of this into a sipp which was grossed up to 3600. Pension Wise a free and impartial government service which provides free pension advice advises me that this pension contribution would also reduce my gross income by 3600 to 8900 and so an extra 3600 of my savings interest would not be taxed. This did not happen. Why.?

Hi I have a question regarding the £5,000 savings allowances. I am retired and my total pension income is £12,500. My savings interest in 24/25 will be £9,700. The UK pensions advisory helpline have told me that if I contribute £2880 to a SIPP the government will not only add £720 thus making this up to £3600, but that this £3600 pension contribution will also be deducted from my unearned pension income thus enabling me to receive the extra interest tax free. However in 23/24 I made the same pension contribution but the hmrc tax calc did not reduce my pension income by £3,600. I just received a note that my basic rate allowance would be increased by £3,600 from £50,570 to £54, 170. The Pensions helpline assured me that hmrc would reduce my pension unearned income by £3,600.