EE Pension contributions and AVC

N

NuriaF

Registered User
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Hello,

I'm a member of a DC pension through my company where my company puts 8% (ER) of my salary and I put 6% (EE)
I also contribute the maximum 35% AVC for my age which is 57. I wonder if the tax relief on my AVC is not the full 35%
but because of the EE contributions at 6% is only 29%. I didn't mind so far but if this is the case next year I will reduce it to 29%
and use the extra cash for some other type of investment, like the new investment scheme at 1% above 50K.
Can someone confirm that please ? Thanks !!

Nuria
 
NuriaF said:
Hello,

I'm a member of a DC pension through my company where my company puts 8% (ER) of my salary and I put 6% (EE)
I also contribute the maximum 35% AVC for my age which is 57. I wonder if the tax relief on my AVC is not the full 35%
but because of the EE contributions at 6% is only 29%. I didn't mind so far but if this is the case next year I will reduce it to 29%
and use the extra cash for some other type of investment, like the new investment scheme at 1% above 50K.
Can someone confirm that please ? Thanks !!

Nuria
Click to expand...
Yes you are correct. The 35% is for your total contributions from both normal contributions and AVC. It does not include employer contributions. So you can contribute a max of 35% (6% normal contributions to get your employer match and 29% as an AVC) of your income.
 
You can claim tax relief on any excess contributions paid in previous years against future years contributions.

If for example you overpaid last year and didn't get tax relief on a surplus of 2k. You can claim tax relief on this 2k this year.

Your total extra tax relievable amount for this year would then be reduced by 2k.
 
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