A client works for the military and is an active member of the AFPS. He earns a salary of £70k pa.
He has received a retention bonus of c£70k which has already been paid out.
Total income for 20/21, including salary, bonus and rental income is projected to be c£150k.
He wants to sacrifice some of the bonus to reduce the amount of tax paid.
If he makes a lump sum contribution into the AFPS (15), will he receive the same tax relief compared to making a personal pension contribution?