see when a taxpayer falls in higher rate or addtional rate relief is given by extending the band rates by gross amt of contribution made plus 20% tax releif. but what if he is a basic rate payer? r the band rates still increased by gross pension amt?
You can increase the basic rate band, but if they’re already a basic rate income tax payer then it won’t make any difference to the calculation of the INCOME TAX as their level of taxable income is already within the basic rate band.
The only time that extending the basic rate band for a basic rate income tax payer would be if they also had taxable gains.