Pensions - Special Annual Allowance Charge (SAAC)
I have a question of calculating Relevant Income (RI) for the SAAC
My client has total income for 2010-11 of £135,562. He made personal pension contributions of £118,499 gross.
In computing his relevant income I understand, as per step 4 of HMRCs calculation at RPSM15101060, I can deduct from his total income, to a maximum of £20,000, any personal pension contributions paid in the year in order to establish his RI.
An IFA has however made a comment that after deducting this £20,000 (or even £5,563 to get his relevant income under £130,000), that this amount used here at Step 4, is not available to extend the BR band later in the computation.
Has anyone else heard of this? I can't find anything in the manuals or an example that illustrates the point.
Thanks in advance for any help or advice offered.
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