There is an example on the HMRC website suggesting pension contributions are deducted from total income, with the net result liable to tax. This gives relief for the contribution at 50%.
Can anyone confirm how the relief will work - having tried to read the legislation and piece the different bits together, I have hit an impasse! My theory would be that the basic rate band would be extended, but the higher rate band would correspondingly shrink, giving relief at 20% of the gross, as previously. Any help here would be appreciated.
Thanks