| [s190(2)] |
A
relevant UK individual who has no
relevant UK earnings in a tax year may still
qualify for tax relief on contributions into a
registered pension scheme up to the ‘basic
amount’ in a tax year. The basic amount is currently
£3,600. However tax relief can only be given if the
contribution is made to a scheme that operates the relief at source
(RAS) system.
Example
Pierre may contribute £2,880 into his pension scheme (which operates RAS). The contribution will be increased to £3,600 by way of a payment from HMRC to the pension scheme of £720 (tax relief at the basic rate using the current rate of tax of 20%).
This applies even if the individual is a non-taxpayer.
| Glossary ( RPSM20000000) |
