Tax relief?

[futisle]

I recently started a pension. I was paying tax at the higher rate (just about) and decided on the amount to invest in a pension based on the tax relief I would receive at the higher tax rate. I don't seem to be geeing the amount of tax relief I calculated, however with the new tax relief I'm no longer paying tax in the higher tax bracket. Does this mean that I will only recieve tax relif at the lower rate? I assume so, just like to be sure

 

[asdfg]

When you make a contribution to pension, your salary for tax purposes is reduced by your pension contributions. In your case this effectivelly means now most of your contributions will be liable to tax relief at the lower rate. However any increase you get in salary in the current tax year will be liable to tax at the lower rate.

 

[usrbin]

Sorry to butt in here, but could I just get this clarified to make sure I've got this totally right (tax returns make me nervous):

I'm doing a tax return with a PRSA contribution for the first time time.
This figure (i.e. what I'm putting into the PRSA this week) comes right off the top, doesn't it, like, say, expenses?

That is, I take my gross income and deduct my PRSA contribution straight away when I'm working out my taxable income, don't I?
Many thanks.

 

[asdfg]

I take my gross income and deduct my PRSA contribution straight away when I'm working out my taxable income, don't I?

Yes

You can offset (deduct) your PRSA contribution against 2006's income subject to revenue rules (maybe your doing this already)