A question that's come up on the Pensions board.
A higher rate taxpayer through pension income, savings etc so no earned income so can only pay £3600 gross into a RAS scheme. Basic rate tax relief is added by the pension provider. Can higher rate tax relief then be claimed?
At first glance it's only ever mentioned that basic rate tax relief is due but if adding the £3600 gross to the tax return, this would increase the basic rate band and thus give higher rate tax relief.
Can any of you accountants clarify this as I'm sure you'll have come across such a situation with your clients.
A higher rate taxpayer through pension income, savings etc so no earned income so can only pay £3600 gross into a RAS scheme. Basic rate tax relief is added by the pension provider. Can higher rate tax relief then be claimed?
At first glance it's only ever mentioned that basic rate tax relief is due but if adding the £3600 gross to the tax return, this would increase the basic rate band and thus give higher rate tax relief.
Can any of you accountants clarify this as I'm sure you'll have come across such a situation with your clients.