Due to changing circumstances, I think I might exceed my UK pension allowance for the tax year 23/24. As I understand it, there is a tax charge for this at the marginal rate of Income tax. Is this tax just recovering the excess pension relief that my pension company claims on my behalf (thus I haven't lost anything directly I've just not been as tax-efficient as possible)? Or does this end up with me paying additional costs?
- None of the higher-income rules apply
- I'm not eligible for the carry-forward benefits.