Tax relief query
Jimbo
Member
I have confused myself! I know rental income is not UK relevant earnings, so doesn't count towards how much you can put into a pension, but lets say someone had salary of £50,270 and £20,000 rental income. If they put £10,000 into their pension, would they be eligible for higher rate relief on that £10,000 as their total income is in the higher rate, but UK relevant earnings aren't?
Thanks!
Comments
Yes
Your relevant earnings dictate how much you can put in but your tax relief is dictated by what type of income you put into a lower tax band.
Tax Reief Modeller shows you the sums
Super, thank you Les!