tax-relief calculation for pension contribution??

[melonn]

Does anyone know how to calculate the tax-relief for lump sump pension contribution? any equation to use?
For example,
Gross income for income levy =99,573.
Amount of income levy deducted(for 2009)= 1,995
Maximum lump sump allowed to contribute =19,000

was told tax relief might be eligible for higher rate of 41% instead of standard 20% depending on the income levy.
How does it work?
Thanks for helping!

 

[Domo]

Tax relief at your marginal rate of tax, but not relevant for Income levy

 

[melonn]

What is marginal rate of tax?
For 2009,my standard rate band is 36,400 at 20% the rest higher at rate of tax 41%.
i was told that the tax relief for contribution will be 20% up to certain portion (eg from the max 19,000), and the rest at 41%?
i'm hoping the calculation of tax relief can help me to decide how much contribution to put in.
Thanks!

 

[Gervan]

Your marginal ratae of tax is the highest rate you are paying, so for you, 41%.
Once the pension contribution has exhausted the amount you were paying at the higher rate, the rest of the qualifying contribution will be relieved at 20%.
I'm not up to date fully on pension relief, but believe there are proposals relief will be given only at 20% level in future.