The following is a quote from the Times about the 2006 pension changes:-
"So a 100,000 property bought within a Sipp would, after relief at 40 per cent, cost a higher-rate taxpayer just 60,000. Rental income will accumulate tax-free and there is no capital gains tax on profits when the property is sold."
Can anyone please explain to me how the 40,000 relief can be recovered from the IR.
I assume the pension fund will have to pay 100,000 for the property.
Thanks