My question is regarding UK tax relief on pensions, and there are a couple of questions. Say I earned £52,385, exactly £10k over the UK higher rate tax band of £42,385. My provider would usually claim back 20% tax relief automatically, and I believe it is up to me to claim any additional tax relief in my self assessment tax return.
Am I right in thinking the following things:
- If I paid £10k into the pension this year, then I can claim a 20% additional tax relief in my self assessment on ALL of the £10k, so the pension provider would apply for £2k tax relief and I could get an additional £2k through my self assessment?
- If I hadn't paid in anything last year, and I paid in £20k this year (assuming my salary, etc... was all exactly the same last year), could I apply for additional pension relief on the full £20k by carrying forward any of last year's entitlement, or not?
The Money Advice Service website (https://www.moneyadviceservice.org.uk/en/articles/tax-relief-on-pension-contributions) states the following: "you can carry forward unused allowances from the previous three years, as long as you were a member of a pension scheme during those years."
So, my final question:
- Assuming I already have a pension, but do not want to use that one any more; If I were to open a NEW pension this year, can I still carry forward the unused allowance in the second question above if I pay money into a pension I have just opened? Strict interpretation of the quote above would suggest I can, but if anyone has more information on this, that'd be greatly appreciated.