On the personal allowance it says This allows an individual to obtain tax relief on contributions up to 3600 per annum or their full taxable uk earnings if higher. Can anyone explain this - so if you earn 10000 is it saying you can get tax relief on full 10 000? So no one will ever be capped? Please help!
For most people, the cap is their taxable UK earnings. This means you can't suddenly pay in large savings from elsewhere in order to get tax relief just before retirement. But everyone can pay in at least £3,600pa regardless of their income. The point was to encourage pension savings, whilst preventing abuse.
