Personal pension contributions extended basic rate band

Personal pension contributions extended basic...

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My understanding is that when an individual makes  a personal pension contribution that the basic rate band is increased by the grossed up amount and that this applies to the taxation all forms of income including dividends.  I'd be grateful if someone could confirm that this the case (or set me straight!).

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Portia profile image
By Portia Nina Levin
18th Mar 2016 11:11

Yes, but what is the real question? I mean, what is the underlying reason for asking?

You could still be missing something, if, for example, you are not taking account of the pension contribution in the calculation of adjusted net income.

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RLI
By lionofludesch
18th Mar 2016 11:18

Not in Taxes Acts

It's not what it says in the Taxes Acts but that's how it is often dealt with in practice.  It'd be a rare situation where it didn't amount to the same thing.

But - as Portia says - why do you ask ?  Your reason may be relevant.

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Replying to Bagas.Ynnya:
Portia profile image
By Portia Nina Levin
18th Mar 2016 11:29

Er...

lionofludesch wrote:

It's not what it says in the Taxes Acts

... yes it is! FA 2004, section 192(4).

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