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 individual is liable to tax at a higher rate. The allowance gives relief for the difference between the basic and the highest rate at which the individual is liable.

Use the description Personal Pension Relief.

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

You do not need to give further relief for payments deducted from an individuals pay before it is taxed (the net pay arrangements). If payments to an employer’s occupational pension scheme (or any Additional Voluntary Contributions) are deducted from an individual’s pay before it is taxed then the full amount of tax relief will already have been given.