Two working pension tax relief 20% or 42% ?

[dubwx]

We are both Paye and my wife earns under 23k and so is taxed at 20% while my income is higher and taxed at 42%.She has a personal pension plan the premiums for which are deducted from her monthly pay cheque at source by her employer on which she gets 20% tax relief at source.My question is given that we are jointly assessed should she get 42% relief if we look for a tax review at year end.Or is it the case that tax relief for pensions is treated on a purely individual basis.

 

[Jockey]

Hi,

I am unsure of the treatment of PAYE workers when it comes to pensions. I know when a self employed individual is jointly assessed with their spouse the joint incomes are taken into account when assessing the relief at 20% or 42% on their tax returns. Hope that helps a bit.

Jockey

 

[murp]

Tax relief for pensions is treated in an individual basis regardless if you are jopintly assessed to tax.