Recycling PCLS

I believe that when looking at whether additional contributions exceeds 30% of the PCLS it is gross contributions that you consider. Someone has challenged me to refer to a reference for this, and I can't find one - can someone help?


  • You'll not find it explicitly. So you have to decide what the law says the contribution amount is generally.

    FA 2004 192 Relief at source
    (1) Where an individual is entitled to be given relief in accordance with this section in respect of the payment of a contribution under a pension scheme, the individual or other person by whom the contribution is paid is entitled, on making the payment, to deduct and retain out of it a sum equal to income tax on the contribution at the relevant rate.

    It s clear that a contribution is the gross amount not the net amount

    Why would a RAS £10k use £8k for the recycling rule and a Net Pay £10k use £10k?

Sign In or Register to comment.