31/12/2008 - Tax relief for higher rate taxpayers

The higher rate of income tax is unchanged at 40% in 2008

The higher rate of income tax, applicable to anyone earning more than £36,000 in the 2008/09 tax year, is unchanged at 40%. This means that any members who fall into this tax bracket receive 40% tax relief on their pension contributions - so a contribution of £100 effectively only costs you £60 because it is taken from your pay before tax is deducted.

You should also remember that any AVCs you pay into the Scheme also qualify for tax relief, so you may wish to consider paying AVCs in order to maximise your benefits at retirement and take advantage of the tax relief available. If you would like to begin paying AVCs, or adjust an existing AVC, please contact Capita Hartshead.