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Hello Tutor, i hope you are doing well.
“A registered pension scheme is a long-term savings plan for retirement with special tax privileges.
The individuals who invest are entitled to tax relief for the contributions they make into the scheme limited to the higher of:
?The relevant earnings of the taxpayer, being mainly employment income and/or trading profits plus any profits from furnished holiday lettings, or
? £3,600 of gross contribution”.
I wanted to ask, whether the above provision is relevant only for a Personal Pension Contribution or for both (Personal Pension and Occupational Pension Contribution). Because the AI Future says it’s relevant for both.
But I’m unable to understand how this is relevant for an employee contributing in Occupational Pension Contribution.
Looking towards an early reply. Thankyou
Although I understand the above provision is relevant for an Individual Contributing towards Personal Pension Scheme. As this would act as a limit to the Extension of Bands.
But how is this Relevant for an Individual Contributing towards Occupational Pension Scheme? , as this is an Allowed Expense that is deducted while determining the Income from Employment and does not result into Band Extension.
Tutor can the please answer me about this. Thankyou in Advance.
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