PAYE10065 - coding: coding allowances and reliefs: retirement benefit schemes

Basic rate relief for Personal Pension payments and payments to Free Standing Additional Voluntary Contribution Schemes (FSAVCS) is given at source.

You will only need to give coding relief where the taxpayer is liable to tax at the higher rate. The allowance gives relief for the difference between the basic and higher rate.

Use the abbreviation PPR. Form P202 shows you how to calculate the coding allowance or you can use the SEES Coding Assistant.

Full details of the certificates you need to obtain and how to calculate the relief due is contained in the Pension Scheme Instructions (PSI) Manual.