Does anyone know if a tax efficient covenant will reduce the net relevant earnings for the purposes of calculating the max tax relief available from contributions to a personal pension.
Does anyone know if a tax efficient covenant will reduce the net relevant earnings for the purposes of calculating the max tax relief available from contributions to a personal pension.
However, you can also use them to reduce non-relevant earnings. So say you also had covenant of 4K and rental income (non-relevant earnings) of 10K, you could reduce the 10K by the 4K, and your NRE figure will not be effected.