AVC question

[Westsider79]

Myself and husband are jointly assessed and earn over 110k between us. He is the lower earner and is paying AVCs but doesn't seem to be getting the 40% tax relief on his payslip. As higher tax payers we assumed it would come off automatically as he is paying through work. Any thoughts?

 

[LDFerguson]

If his AVC is bringing his income down below the 40% band (or his income is already below the 40% band) then he'll get relief at 20% on some or all of the AVC. A possible fix is for him to give you all his tax credits.

 

[RedOnion]

@Westsider79

Have a look at this post:

Post in thread 'Joint assessment for AVCs possible' https://www.askaboutmoney.com/threads/joint-assessment-for-avcs-possible.229894/post-1804381

 

[Westsider79]

If his AVC is bringing his income down below the 40% band (or his income is already below the 40% band) then he'll get relief at 20% on some or all of the AVC. A possible fix is for him to give you all his tax credits.

Great thanks for that

 

[Westsider79]

@Westsider79

Have a look at this post:

Post in thread 'Joint assessment for AVCs possible' https://www.askaboutmoney.com/threads/joint-assessment-for-avcs-possible.229894/post-1804381

Cheers

 

[JimmyB99]

A possible fix is for him to give you all his tax credits.

Hi LDF,

I can't see how this would fix anything? The rate of relief on AVCs is not influenced by which of the couple get the personal tax credits? Red Onion's explanation is on the money.

 

[LDFerguson]

Hi LDF,

I can't see how this would fix anything? The rate of relief on AVCs is not influenced by which of the couple get the personal tax credits? Red Onion's explanation is on the money.

My apologies - you're right. I was thinking back to the old Tax Free Allowance system.