RE285 - Personal Pension Relief: Net Relevant Earnings (NRE)

To arrive at the figure of NRE you need to deduct such items as:

• expenses allowable under ICTA88/S198
• professional subscriptions under ICTA88/S201
• Clergyman's expenses allowable under ICTA88/S332 (3)
• capital allowances
• loss relief
• stock relief
• business charges

from the figure of relevant earnings.

Form PP43B should be used to calculate the NRE for personal pension purposes. Side A of the form is for self-employed individuals and Side B for employees.

Once you have worked out the figure of NRE you can calculate the amount of relief due (relievable contributions) by reference to the statutory percentage limits.