Tax relief on contributions @ 20% or 40%

[Daddy]

Hi,

I understand the threshold to get higher tax relief on all pension contributions is € 33,800.

So if I earn € 33,799 this year any contributions I make get tax relief of 20%. That's clear enough.

Now if I earn say € 33,801 this tax year do I get tax relief on all contributions at 40% ?

Thanks

 

[Joe_90]

The pension contribution is deducted from your salary then the tax computed.

If you earn €33,801 and contribute €1,000 to a pension then you get relief on €1 at 40% and €999 at 20%.

 

[Daddy]

Thanks Joe - that's perfectly clear.