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Personal Allowance

Reduction in personal allowance

As i have nothing to do with personal taxation I am seeking an answer about personal allowance. Over £100k per annum the personal allowance is eroded by £1 in £2. Is this affected by pension payements please. Someone has indictaed that the personal allowane is restored if the excess over £100k is paid into a pension? Can't be right can it?

 

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By Matrix
25th Mar 2019 18:23

This is correct and helps if they earn under £124k. If over this then they would have to put a lot in a pension to get back to £100k.

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25th Mar 2019 22:17

Agree with Matrix.

For reference, the personal allowance is given with reference to "Adjusted Net Income" which is broadly total net income minus gross personal pension contributions and gross gift aid contributions.

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