Higher rate tax relief for pension contributions of non-earners

 

If one earns a salary of £10,000 and makes contribution to a personal pension of £6,000 (including the basic rate tax reclaimed by the pension provider), in calculating overall tax, the basic rate limit is increased by £6,000 as a means of facilitating higher rate tax relief. However, if one does not earn a salary at all and makes a contribution to a personal pension of £3,600 (including the basic rate tax reclaimed by the pension provider), is the basic rate limit increased by £3,600? Or is there an exception rule that means non-salary earners are not afforded the benefit of higher rate tax relief on such contributions?

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To obtain tax relief

K81 |
K81's picture

Clarification

ebatch |

Clarification

vince8 |

Yes

George Attazder |
George Attazder's picture

Thanks George Attazder. That

ebatch |