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tax relief on AVCs and 'supplementary' pensions

I have a small secondary pension plan which started out years ago as an AVC when I was in an occupational scheme. When I moved jobs I joined a group pension provided by the new employer and was told I had to to convert my AVC to some other form of policy, the name of which now escxapes me. I'm trying to find out what went on but its proving difficult.

I'm a higher rate tax payer, based on these sketchy details can anyone comment on whether or not I can claim tax relief on this pension. I did succesfully claim it in that last couple of years' tax returns. My total payments do't come near any limits.

Thing is, my tax code was finally altered to take account of my pension payments but only my main pension was included. The figure credited for relief does not include the AVC payements. Is this a hint from the IR, or standard practice?

Thanks.

Reply to
urchaidh
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It appears that you left an occupational scheme - being a member of which required you to have an AVC (or possibly an FSAVC) if you wanted to make extra payments - and are now a member of a group personal pension scheme. You cannot now make payments into an AVC. You would have started a personal pension, continuing on, as it were, from where the AVC left off (but under the rules of personal pensions which are different to those of occupational schemes). You can claim tax relief on either of these schemes up to your maximum limit. You'll actually be paying the premiums into these schemes net of basic rate tax already, so the only amount you can now claim for is the extra 18% for higher rate tax.

Rob Graham

Reply to
Rob graham

occupational

Thanks - that sounds like a reasonable explanation of what happened, fits in with what I remember. I didn't pay enough attention at the time and really need to track down and talk to the FA bloke who made the changes for me.

Indeed, I claimed for both shemes on my last two tax returns. What confused me was thsi year is that when the IR added pension tax relief to my tax code for 04/05 they only included my group personal pension and not the one that used to be the AVC.

Perhaps I filled in the self assesment form incorrectly. Looking at it now I put the group personal pension contributions in 14.6 and the second personal pension (that used to be an AVC) contributions in

14.11. Perhaps both should have gone in 14.6?

Again, thanks for the advice.

Reply to
urchaidh

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