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Every year HMRC gives away tax relief – make sure you get your entitlement

Every year HMRC gives away tax relief – make sure you get your entitlement

How pension tax relief works…
UK investors under age 75 can benefit from up to 45% pension tax relief this tax year.
The higher your rate of tax, the more tax relief you could receive. Even non earners, including children,
and those with an income under £3,600 can benefit, but can only contribute up to £3,600 this tax year (2013/14)
● Basic-rate tax relief of 20% is added automatically. For instance, you contribute £8,000 to your
pension and the government adds £2,000,to make a total investment of £10,000.
● Higher-rate taxpayers can claim back up to a further 20% through their tax return –another £2,000 in
this example. So the cost of a £10,000 contribution is as little as £6,000.
● Top-rate taxpayers can claim back up to a further 25% through their tax return – another
£2,500 in this example. So the cost of a £10,000 contribution is as little as £5,500.
Contact your independent financial adviser to act now

 

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