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Where Taxpayers and Advisers Meet

Tax relief on SIPP contribution urgent

marjo
Posts:3
Joined:Thu Oct 08, 2015 6:52 pm
Tax relief on SIPP contribution urgent

Postby marjo » Tue Jan 10, 2017 2:45 pm

I am a higher rate tax payer (40%), for financial year 2015-16, I contributed £ 3500 into a SIPP and the SIPP Company obtained £ 875 as tax relief, can I claim back on my self assessment return, £ 525?

RudolphtheRed
Posts:6
Joined:Tue Jan 10, 2017 5:59 pm

Re: Tax relief on SIPP contribution urgent

Postby RudolphtheRed » Tue Jan 10, 2017 6:13 pm

I assume that your gross contribution was £4,375 and you obtained basic rate relief of £875 so that you physically paid £3,500. If so, you are entitled to tax relief at 40% so you can claim a further £875 of tax relief via your SA return ie £4,375 x 40% = £1,750 less relief already obtained £875.

Umar
Posts:67
Joined:Wed Aug 06, 2008 3:36 pm

Re: Tax relief on SIPP contribution urgent

Postby Umar » Mon Aug 14, 2017 9:53 pm

So does this tax relief go to the individual?

Is this right?
- So income has been received in the person's hand with no tax applied.
- The person could then put that money into an isa.
- So no tax has been applied on the income, and as it is put into an isa, no tax on the asset invested either.

Sounds very tax efficient?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax relief on SIPP contribution urgent

Postby bd6759 » Mon Aug 14, 2017 11:53 pm

- So income has been received in the person's hand with no tax applied.
The question refers to making a payment into a pension scheme. No mention of receiving income.

Umar
Posts:67
Joined:Wed Aug 06, 2008 3:36 pm

Re: Tax relief on SIPP contribution urgent

Postby Umar » Tue Aug 15, 2017 5:08 am

Let's assume income is received!

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax relief on SIPP contribution urgent

Postby bd6759 » Tue Aug 15, 2017 8:55 pm

Let's assume income is received!
Received from what? There is nothing in the question about a source of income.


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