Bonus sacrifice

Bonus Sacrifice:

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?

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