Hi all,
Say I exhausted the pension annual allowance of £40k this year including all carry forward allowances, if I were to save any further amounts into my pension (such excess amounts therefore subject to annual charge) would these (excess) pension contributions still count towards the calculation of the adjusted net income (for assessing personal allowance purposes)?
For example, before incurring annual charge I have paid 40k into pension (via net pay, and assuming no carry forward) and I still have adjusted net income of 120k income (after aforementioned pension contribution) - if I then decide to then pay another 20k into pension via net pay (so will incur annual charge on the additional 20k contribution), will my adjusted net income be 100k and thus retaining the full personal allowance?
I'm trying to decide whether saving in excess of the annual allowance is an option if it means I am able to validly preserve my personal allowance under the above circumstances.
Thanks in advance!
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