“Tax relief” I hear you say – but the answer is “it depends”.
We explained to a client the other day that some pension contributions give rise to tax relief (i.e. a reduction to your tax bill if you are a higher rate tax payer and an additional 20% tax credit added to your pension by the Government) and some can get you a tax bill. Confused? Well you would not be alone as the answer is that it depends on your circumstances.