How does a higher rate (40%) tax payer earning Â£80,000 obtain tax relief on pension contributions?
a) No tax relief is available for higher rate tax payers.
b) The pension provider will apply for the full 40per cent tax relief.
c) The pension provider will apply for basic rate tax relief, the remainder is claimed via personal tax return.
d) The entire amount is claimed via a personal tax return.
Answer = C