Offsetting

G

germ

Guest
Hi
I am a PAYE worker but have rental income from a 2nd property. I have just started a personal pension and as well as regular monthly contributions from my monthly salary the pension provider says i can put in lump sums if and when i have any.

As i am 41 and on a relatively high salary i am allowed put in up to 25% of salary to my pension with full tax relief.

So my question is:

If i put in 5% of my monthly salary towards my pension, can i then put in up to 20% more of my joint income (salary plus rental income) in a lump sum payment and be allowed full relief..?
Or to put it another way.....Is it 25% of my income or 25% of my salary that i can get full tax relief for..?

thanks in advance for any advice
 
It is 25% of your "Net Relevant Earnings" so it would be your total income as your income is mostly PAYE. See this link:

[broken link removed]
 
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