Misunderstanding over pension tax relief?
A client receives a pension from an overseas source. Historically a relief of 10% has been given and the 90% taxed. My understanding is that since 6 April 2017 (that is for 2017-18 onwards) the 10% relief is no longer available. I have confirmed this with HMRC’s self-assessment helpline.
The problem I have is that the personal tax software I use still automatically reduces by 10% the gross pension figure I enter. I have raised this with the software house and it confirms HMRC has agreed this calculation.
I am now at a loss as to how to proceed. Am I and the HMRC helpline wrong in our understanding or is the software company and HMRC incorrect in their calculation?
I would be interested to hear what Taxation readers might think about this and look forward to replies.
Query 19 233– Stymied.
Reply...
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